The US-Iran conflict drives Asian LNG prices to a three-year high, doubling from pre-war levels

(1) The escalation of hostile actions between the US and Iran has triggered concerns in the market about prolonged disruptions in energy transportation through the Strait of Hormuz, driving Asian liquefied natural gas (LNG) spot prices up to $25.908 per million British thermal units, reaching the highest level since December 2022. (2) Current prices have more than doubled compared to before the conflict, and the high energy costs are putting pressure on the demand and fiscal budgets of some Asian countries. (3) Previously, the Middle East had experienced several weeks of relative calm, but after the outbreak of a new round of hostilities, Asian LNG prices have risen more than 5% this week.