Markets tend to move quickly when a shock hits. Prices adjust, headlines follow, and the first round of winners is usually obvious. But every so often an event reshapes prices, and positioning. The escalation of tensions in the Middle East may prove to be one of those moments. And for Australia, the shift is most visible in one place: liquefied natural gas (LNG).
The war has tightened global LNG markets after Iranian strikes damaged some key Qatari infrastructure. Qatar – the world’s second-largest exporter of LNG, with most shipments destined for Asia – has seen around 17% of its export capacity knocked out. Repairs are expected to sideline roughly 12.8 million tonnes per year of supply for as long as three to five years.
