Turns out that all the turmoil in the Middle East resulting from Operation Epic Fury does have a silver lining, at least for some folks: Oil and gas prices have spiked, and while we hope that this will be a short-lived thing, at least some Americans are cashing in on the high prices. Texas, as shouldn't be surprising to anyone who follows American energy, is leading the way.
U.S. LNG exports hit record-high 11.7 million metric tons in March as new plants in Texas ramped up production while supply disruptions caused by the war in the Middle East drove global gas prices sharply higher, according to preliminary LSEG data.
Asian benchmark LNG prices spiked above $22 per million Btu in March and European prices reached $18.50 MMBtu, creating a $16 to $17 premium over the domestic Henry Hub natural gas price. Current month Henry Hub natural gas futures prices on April 2 settled at $2.80 per million Btu.
At the same time, U.S. natural gas held in storage April 2 stood at 1,865 billion cubic feet, which is 5.4% higher than at the same time in 2025 and 3% above the five-year average of 1,811 billion cubic feet, as domestic prices remained low relative to global benchmarks.
Supply, meet demand. For the people involved in the natural gas business, it's time to make hay.
LNG production at state-owned QatarEnergy halted March 18 after an Iranian strike damaged its facilities, taking about 17% of global output offline. The company said the outage could cut output by more than 12 million metric tons per year for up to five years.
In Texas, the start of operations at the Golden Pass LNG terminal, a joint venture between Exxon Mobil and QatarEnergy, along with a ramp up of a production unit at Cheniere Energy’s Corpus Christ LNG, are expected to lead to record-high U.S. output in the months ahead.
The U.S. Department of Energy in mid-March authorized Venture Global’s LNG export facility in Plaquemines Parish Louisiana for an immediate 13% increase in export capacity, bringing an additional 450 million cubic feet per day to global markets. Other export terminals like Sabine Pass and Cameron LNG operated beyond their normal capacity in March.
There is, though, a big, black cloud behind that silver lining.
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Here's the problem: The spike in natural gas and oil prices is going to, inevitably, have a detrimental effect on the economy, and not just in the United States. It is, of course, great that we are standing up production, storage, and export so quickly, and the higher prices can actually help with that. But the cost of energy is folded into every product, service, and commodity that we buy - and by "we" I don't just mean Americans, but everyone. Energy is a global market, and like it or not, Iran is a big player - and right now, they not only aren't playing, but they can't play. They can, however, screw up the game for their neighbors.
President Trump gives every indication of being optimistic that this Iran mess will be resolved soon, and if it's done right, that means that the mullahs and their minions are defenestrated, never to return to power. If a new, free Iran can turn on the taps, that will drop energy prices back to their antebellum levels.
Let's hope the president is correct, and we see a fast resolution to this thing; if for no other reason, think what going into the midterms with gasoline at over $4 a gallon might mean to voters.
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
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