The closure of the Strait of Hormuz on February 28, 2026, has sent global LNG prices soaring, with European benchmark TTF futures jumping over 30% to $14.80 per million British thermal units (MMBtu). The disruption threatens energy supplies across Europe and Asia, while US prices remain insulated.
The closure of the Strait of Hormuz on February 28, 2026, has sent global LNG prices soaring, with European benchmark TTF futures jumping over 30% to $14.80 per million British thermal units (MMBtu). The disruption threatens energy supplies across Europe and Asia, while US prices remain insulated.
Why did LNG prices surge globally?
The Strait of Hormuz is a vital chokepoint for approximately 20% of the world’s LNG supply. Its closure in late February halted shipments from major Gulf producers including Qatar and the UAE, tightening supply in markets heavily reliant on these cargoes. European and Asian buyers scrambled for alternatives, driving up spot prices.
How did the closure affect Europe and Asia?
European TTF prices hit $14.80/MMBtu, while Asian JKM prices saw a similar spike. In contrast, US Henry Hub prices remained relatively low due to abundant domestic production, creating an unprecedented price gap between markets. Data from the U.S. Energy Information Administration’s Short-Term Energy Outlook confirms the divergence.
Are there alternatives for affected countries?
European nations are increasing imports of US and Norwegian LNG, but limited export capacity constrains the response. Some Asian countries are tapping strategic reserves, but short-term solutions remain challenging as the closure persists. Longer routes from alternative suppliers add logistical costs and delays.
What does this mean for Gulf energy markets?
While Gulf countries are major LNG exporters, the closure hurts their ability to ship product. Qatar and others may need to reroute cargoes via longer, costlier paths, raising logistics expenses. However, higher global prices partially offset volume losses. The region’s own gas-dependent industries could face higher input costs if the situation drags on.
What are the price forecasts for coming months?
Analysts expect prices to remain elevated as long as the Strait is closed. If the blockade extends beyond three months, TTF could reach $20/MMBtu, intensifying economic pressure on Europe and Asia. The duration of the closure is the key variable; any diplomatic resolution would quickly reverse gains.
Frequently Asked Questions
When did the Strait of Hormuz close?
The Strait of Hormuz was closed on February 28, 2026, disrupting LNG shipments from Gulf producers to Europe and Asia.
How much did LNG prices rise in Europe?
European TTF futures surged to $14.80 per MMBtu, an increase of more than 30% compared to pre-closure levels.
Did US gas prices rise due to the closure?
No, US Henry Hub prices remained relatively stable due to ample domestic production, creating a wide price gap with European and Asian benchmarks.
Sources
- CleanTechnica — International LNG Prices Rise Amid Strait of Hormuz Closure
