Petrochemical markets have also reacted, with China’s methanol futures rising more than 6% amid concerns over Iranian supply. Iran is the world’s second largest methanol producer. ICIS analysis highlights that the risk of prolonged Iranian disruption and potential closure of the strait is reshaping market expectations and pricing behaviour, with Brent potentially approach-ing or exceeding US$100/bbl if the closure persists, although renewed US Iran talks could limit further gains.
The strikes, which killed Iran’s Supreme Leader Ayatollah Ali Khamenei, came amid recent nuclear negotiations in Geneva, adding to already elevated crude prices and heightening uncertainty across global energy and chemical markets.
QatarEnergy has suspended LNG production at the world’s largest export facility following military attacks, significantly escalating the crisis. As a result, European gas prices have surged 48% since Friday, according to the ICIS TTF front-month benchmark.
On Monday morning (2 March), the ICIS TTF Early Day assessment for April 2026 stood at US$13.94/MMBtu, up 26% from the previous close, be-fore climbing a further 20% in volatile trading after confirmation of the production halt.
Meanwhile, no LNG vessels have transited the Strait of Hormuz since Saturday, effectively cutting off around 20% of global LNG supply. Although there is no formal blockade, tankers remain anchored due to heightened security and insurance risks, intensifying supply concerns.
Oil markets have also reacted, with Brent crude rising more than 10%. However, prices do not yet reflect a full structural supply shock, given the previously well-supplied global oil market.
Europe imports a relatively small share of its LNG directly from Qatar, but Asia’s dependence is much greater. This is likely to increase competition for flexible LNG cargoes and drive global prices higher. European storage levels, at 30% at the start of February, add to vulnerability ahead of the summer refill season. If disruption persists into the second quarter, further upside in gas and potentially oil prices remains possible, particularly if ship-ping disruptions and insurance constraints continue to limit flows.
