US natural gas futures climbed above $3.20 per MMBtu in March, their highest level in more than a month, mirroring the broader rally in global energy prices as disruptions to gas shipments from the Persian Gulf boosted foreign demand for US liquefied natural gas (LNG). Escalating attacks by Iran on GCC countries and on Israeli–US assets reduced expectations of any near-term de-escalation in the conflict.
The war forced QatarEnergy to suspend operations at its LNG facilities, which account for about 20% of global supply. At the same time, LNG exports from the UAE remained halted as tankers avoided transit through the Strait of Hormuz. These disruptions prompted major Asian buyers of Middle Eastern LNG to compete more aggressively with European importers for US cargoes, driving up Henry Hub prices despite robust domestic output.
On the supply side, the latest EIA data showed that US natural gas inventories declined by 28 billion cubic feet in the first week of March—less than analysts had expected—underscoring the approaching end of the withdrawal season.
