News Brief

April 29, 2026

Iran war widens gap between U.S. and global natural gas prices

The already steep divide between U.S. natural gas prices and those in Asia and Europe has been exacerbated by the war with Iran that has shut down the Strait of Hormuz.

According to the U.S. Energy Information Administration, liquified natural gas (LNG) prices increased by 35 percent in Europe and 51 percent in Asia for the last full week of April compared to the war’s start in late February. The strait’s closure has reduced the global gas supply by about 20 percent, mainly from a major export facility in Qatar.

Natural gas prices in the U.S. have decreased by about 9 percent because of the country’s vast supply and limited ability to increase LNG exports, with U.S. LNG terminals close to capacity. The Trump Administration has authorized more exports from two more U.S. LNG facilities since February, according to the EIA.

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