US natural gas futures climbed more than 2% to around $3.02 per MMBtu on Tuesday, building on Monday’s 3.5% gain amid concerns over supply disruptions due to widening conflict in the Middle East. A high-ranking Iranian official on Monday said the Strait of Hormuz is closed and warned that it would “burn any ship” attempting to transit the strategic waterway. The Strait is a critical chokepoint for global energy flows, accounting for roughly 20% of LNG exports, primarily from Qatar. Compounding the risk, QatarEnergy, one of the world’s largest LNG producers, halted operations after Iranian drones targeted its Ras Laffan and Mesaieed facilities. Any prolonged disruption could boost demand for US LNG, particularly as the domestic natural gas market is running a 0.3% deficit relative to its five-year average.
