Will Natural Gas Prices Go Up During Conflict?
Following US and Israeli strikes on Iran on February, 28th 2026, Iran retaliated. Among Iran’s initial targets were oil and gas refineries in the region and effectively closing the Strait of Hormuz. These moves stand to have a massive impact on energy prices globally. But how will the Iran conflict impact natural gas prices in Georgia? Let’s get into the details now.
What Iran is Targeting and Why It Matters
The big play in the game so far is definitely the Strait of Hormuz. Shutting down the strait cuts off about 20% of global liquefied natural gas (LNG) and crude oil exports.
But when it comes to natural gas, the US is a big producer. For Georgia, most of our natural gas comes straight from domestic gas fields which keeps GA gas prices low. So, we may not be directly affected as much or as quickly as areas like Asia and Europe.
Iran has also directly targeted its neighbors, like Qatar’s natural gas facilities. Qatar supplies about 20% of global LNG. Due to attacks, Qatar may shut down gas production for a month or more. Even though we don’t get natural gas from Qatar, this still puts a major squeeze on global supply and demand.
And of course, crude oil prices going up pushes up LNG, too. Iran is targeting crude oil infrastructure and the Strait of Hormuz. Additionally, US and Israeli strikes are going for Iran’s oil production.
Outlook for Iran Conflict Effect on Natural Gas
Remember that natural gas is a global commodity; so price changes ripple everywhere. Since the beginning of the conflict, Henry Hub spot prices have jumped from $2.86 to $3.16 per MMBtu (as of March 11). But there has been a lot of up and down with these numbers day to day so far. On the other hand, Europe’s benchmark, Dutch Title Transfer Facility (TTF), rose 76% in a week.
Goldman Sachs recently released projections on the TTF natural gas benchmark if the strait remains closed for one or two months. In one month, we could be looking at prices more than doubling. After two months, we are easily looking at TTF prices more than tripling. This could push US prices higher, albeit to it a limited amount.
Furthermore, keep in mind that storage numbers will sink below averages during the strait shutdown. When things open back up, there will be a rush to refill storage. This will continue to keep global demand high and also affect natural gas companies in Georgia.
Natural Gas Prices in Georgia Right Now
Based on marketer filed gas rates from Georgia PSC, many suppliers upped rates for 12 month fixed rate gas plans this month. These hikes come despite rising temperatures and approaching the spring shoulder period of lower demand for natural gas for heating.
But for some good news, natural gas plans at Georgia Gas Savings are actually lower than some of the marketer filed rates. That means you can snag a cheap rate right now despite the uncertainty of the market.
Iran has made it clear that it wants to keep the Strait of Hormuz closed. For that reason, locking in a cheap rate today could be the real savvy plan. So, grab your natural gas plan today at https://www.georgiagassavings.com.