Iran War Thoughts
The war on Iran is likely to have a longer-lasting effect on global natural gas markets than crude oil. Disrupting energy supplies from the Persian Gulf is part of Iran’s response. The President is acutely sensitive to the price of oil, and we can assume Pentagon war planners are focused on eliminating Iran’s capability to force prices higher.
Natural gas is a different case. It’s harder to move, and alternative supplies are harder to find. Qatar, the #3 LNG exporter, has shut its LNG export terminal after Iranian drones attacked it. Supplies will resume but Qatar is in a dangerous neighborhood. US LNG supplies look relatively more secure not just over the short term. We think this is long term bullish for US gas infrastructure and LNG export terminals.
We have two have funds that seek to profit from this environment: