Spot LNG prices in Asia jumped on Tuesday to their highest level since the 2026 winter as buyers competed for cargoes amid continued disruption to LNG traffic through the Strait of Hormuz, a key transit route for Gulf exporters to reach global markets.

Asia’s spot LNG price rose to as much as $24.614 per million British thermal units (MMBtu) on Tuesday, traders told Bloomberg. That was up from $23.388 per MMBtu on Friday and marked the highest spot price for LNG deliveries into Asia in five months.

Prices in both Asia and Europe had already climbed late last week after Qatar’s state-owned QatarEnergy extended force majeure on LNG deliveries into November, with transits through the Strait of Hormuz still blocked. The rally continued into this week after the United States and Iran exchanged fire for the first time in more than a month.

Buying interest in Asia has been driven in part by South Asian buyers, including Pakistan and Bangladesh, which are seeking spot cargoes to replace term supply from Qatar that cannot leave the Persian Gulf. According to tender documents seen by Bloomberg, utilities in South Korea, India, Taiwan, and Bangladesh are also looking to buy spot cargoes for October and November, underscoring how disruptions in one export corridor can quickly ripple into procurement plans across the region.

European benchmark natural gas prices also moved higher on Monday as the renewed escalation between the United States and Iran increased concerns about LNG supply from the Middle East. The Dutch Title Transfer Facility (TTF) benchmark rose 5% to above 70 euros, or $81.20, per megawatt-hour (MWh), after the two countries resumed trading strikes for the first time in more than a month.

That was the highest level for front-month benchmark futures in more than three and a half years, since January 2023. European gas prices continued to rise on Tuesday, with front-month futures up 2% to $82.60, or 71.20 euros, per MWh in morning trading in Amsterdam.

By Charles Kennedy for Oilprice.com