Renewed military strikes between the US and Iran in the Strait of Hormuz have pushed Asian spot natural gas prices to their highest levels since 2022. This maritime conflict has disrupted global energy shipping, forcing Asian buyers to scramble for alternative oil and gas supplies.
Global market
Asian spot LNG prices climbed near $26 per mmBtu—settling at $25.908 for a 5% weekly gain—following heavy US airstrikes against Iranian equipment. US President Donald Trump announced that the US military targeted and destroyed offensive and defensive military hardware along the Strait of Hormuz. This escalating conflict pushed Dubai crude futures toward $100 per barrel due to aggressive buying from PetroChina, Indian Oil Corp, and refiners in South Korea and Japan. The buying surge occurred despite regional shipping risks, even as Saudi Arabian oil exports plummeted to their lowest levels since 2017.
Russia & CIS
Chinese independent refiners are paying record premiums of $7 to $10 per barrel over Brent crude for November-delivery Russian ESPO crude. Importers are aggressively bidding for Russian Far East grades to replace Iranian crude blocked by the US naval blockade. At the Eastern Economic Forum, Russian President Vladimir Putin announced that the Vostok Oil project will soon launch its main pipeline to the Sever Bay terminal, with first crude shipments expected shortly. Meanwhile, Russian Vice-Prime Minister Alexander Novak stated that recent oil production declines are temporary due to refinery maintenance, and noted the government is discussing lowering the budget rule’s oil cutoff price to $50 per barrel.
Armenia
Russian small-scale nuclear power plants have no global equivalents, Russian President Vladimir Putin declared at the Eastern Economic Forum, emphasizing the uniqueness of Russia’s small NPP technology. This technology remains highly strategic for Yerevan, which is actively negotiating the construction of new nuclear capacities. Meanwhile, Russian Vice-Prime Minister Alexey Overchuk confirmed that EAEU-Iran trade volumes remain highly resilient under their free trade agreement, bolstering Armenia’s regional transit role. While global benchmark Brent crude dipped to $95.02 per barrel, Armenia’s domestic petrol, diesel, and gas tariffs remained stable under EAEU treaties securing duty-free Russian imports at fixed rates, insulated from volatile international market price assessments.