Iran War Inflicts Severe Damage on Qatar LNG Hub, Upending Asian Energy Markets

Analysts slash global LNG supply outlook by 35 million tons as Middle East conflict sidelines Qatari exports and sends Asian prices soaring 143%.

By: AXL Media

Published: Mar 26, 2026, 8:23 AM EDT

Source: Reuters

Crippled Infrastructure and Blockaded Waterways

The conflict has effectively neutralized two of the world's most vital energy arteries. The blockade of the Strait of Hormuz—responsible for 20 percent of global LNG flows—combined with direct damage to Qatar’s liquefaction trains has sidelined approximately 12.8 million tons per year of Qatari capacity. Experts at S&P Global Energy and Rystad Energy estimate the total loss this year could reach 35 million tons, the equivalent of 500 LNG cargoes. This disruption is expected to persist for three to five years, fundamentally altering the medium-term global energy outlook.

Price Surges and Emerging Market Retrenchment

Since the U.S.-Israeli operations against Iran began on February 28, Asian LNG prices have surged by 143 percent. Currently trading at $25.30 per million British thermal units (mmBtu), costs have far exceeded the $10 threshold typically comfortable for emerging markets.

Pakistan: Implementing a four-day work week and rationing energy to textile and fertilizer sectors.

India: Petrochemical and ceramic production hubs are curbing gas use in favor of coal or domestic alternatives.