Disruptions in the Strait of Hormuz are expected to trigger a sharp increase in natural gas prices across Asia by restricting access to vital shipping routes and production facilities. According to the authors of the newly released report, these regional energy shocks demonstrate that even a well-supplied market can quickly face higher costs and supply shortages when key transit points are compromised.
The report notes that “one-fifth of the world’s LNG passes from Qatar through the Strait of Hormuz, over 80% of which goes to Asian buyers.” Furthermore, current market conditions have seen “futures for the JKM spot price jumping 40% as of early March” following attacks on energy infrastructure in the region.
In simple terms, a huge amount of the world’s liquid natural gas travels through a narrow waterway called the Strait of Hormuz, and most of that fuel is headed for countries in Asia. When conflict or attacks shut down this path or the facilities that produce the gas, the sudden lack of available supply causes the price to shoot up. This means that families and businesses in Asia end up paying much more for their energy because the specialized ships carrying the fuel can no longer reach them safely.
The briefing ‘Southern Asia’s gas plans may be overblown’ was released by Global Energy Monitor in March 2026. Prepared by authors Robert Rozansky and Julie Joly, the report analyzes how geopolitical shocks and falling renewable costs are undermining ambitious gas infrastructure projects across India, Pakistan, and Bangladesh.
