17% of global LNG capacity just went offline
This isn’t a price spike.
It’s a supply removal.
Iran’s strike damaged Qatar’s LNG infrastructure, taking ~12.8M tons/year offline for 3–5 years.
That’s not temporary disruption.
That’s multi-year constraint.
LNG markets don’t have slack:
• projects take years, not months
• shipping capacity is fixed
• contracts are long-term
So the adjustment doesn’t come from supply.
It comes from price.
Higher gas → higher power costs → higher industrial input costs
This is how an energy shock propagates:
constraint → repricing → inflation
Tariffs were already tightening goods.
Now energy is tightening everything else.
Stagflation isn’t one event.
It’s stacked constraints.
There’s some slack, from developed wells that weren’t worth bringing to market at recent prices.
However, I imagine you’re right that almost all of the adjustment will come from reduced usage as prices rise.
Yeah, there's probably
But 17% global LNG supply is a real constraint and that doesn't come back fast. Price does the clearing.