Authored by Irina Slav via OilPrice.com,

Spot LNG prices for Asian buyers went up to almost $26 per million British thermal units yesterday for a 5% weekly gain following the resumption of strikes between the United States and Iran.

Spot LNG for Asia traded at $25.908 per mmBtu late on Wednesday, Bloomberg reported, citing unnamed traders, after President Donald Trump said "We took out all of the new equipment that they tried to build along the Strait of Hormuz - some defensive, some offensive ... It was a very heavy attack last night, and we're prepared to do another one any time we want."

Prices in both Asia and Europe had jumped at the end of last week after Qatar's state-owned firm QatarEnergy extended the force majeure on its LNG deliveries into November amid still-blocked transits through the Strait of Hormuz.

Prices in Asia were driven by South Asian buyers, including Pakistan and Bangladesh, seeking spot supply to replace term supply from Qatar that cannot leave the Persian Gulf. Per tender documents seen by Bloomberg, utilities in South Korea, India, Taiwan, and Bangladesh are looking to buy spot cargoes for October and November.

Pakistan, on the other hand, rejected an LNG offer to its last prompt tender earlier this week, as it was priced at over $27 per mmBtu, which the state-owned gas trading company considered too high a price. The cargo was offered by BP.

Recent developments in the Middle East suggest the resumption of normal LNG flows out of the Persian Gulf is nowhere in sight. In light of a seasonal pick-up in demand for gas, chances are that LNG prices will go higher still, likely pricing out some buyers. Gas prices are surging in Europe as well, making it more difficult for gas buyers there to start buying ahead of the winter season.