Asia Pivots to US LPG as Middle East Exports Plunge 73% Amid Regional Conflict

Asian markets are accelerating their shift toward U.S. energy as Middle Eastern exports plunge 73% following attacks on Qatari infrastructure. Amid surging LNG spot prices driven by the conflict involving the U.S., Israel, and Iran, Russia is now offering cargoes from its sanctioned Arctic LNG 2 facility at discounts of up to 40%. These transactions are reportedly facilitated through Chinese intermediaries to bypass U.S., EU, and UK sanctions. While U.S. exports hit a record 11.7 million metric tons in March 2026 to fill the supply vacuum, the emergence of discounted Russian gas presents a new dynamic for South Asian buyers. This development highlights a complex realignment where U.S. energy reliability competes with sanctioned Russian supplies in a volatile global market.