U.S. oil and gas are currently experiencing strong overseas demand, with Asian nations that heavily rely on energy imports from the Middle East seeking alternative suppliers.

Data from the market pricing agency Argus Media shows that since the initial attacks by the U.S. and Israel on Iran, the price of U.S. light, low-sulfur crude oil shipped to Asia has surged by 47%, reaching $115 per barrel. Concurrently, freight rates for U.S. liquefied natural gas (LNG) have skyrocketed by more than threefold, with at least four shipments of U.S. LNG being rerouted from Europe to Asia.

Fabian Ng, head of Asian crude oil pricing at Argus Media, stated that although Japanese refiners have purchased up to 9 million barrels of U.S. crude for delivery in June following the outbreak of hostilities, other Asian buyers are reluctant to pay such high premiums and are waiting to see if the situation improves.

However, conflict is escalating around the Strait of Hormuz—a passage for approximately 80% of Asia's fuel supply. The U.S. military reported on Tuesday that it destroyed 16 Iranian minelaying vessels near this critical energy channel. The U.S. President warned Iran on social media that mining the strait would have consequences.

Analysts from the energy research firm Energy Aspects pointed out that the war has severed the primary energy source for several Asian countries, forcing nations like Indonesia and Pakistan to draw on reserves, which may only last for a few weeks. As demand surges, U.S. production capacity is insufficient to fill the global gap caused by the disruption of oil and gas supplies from the Middle East.

Livia Gallarati, Global Head of Gas at Energy Aspects, said, "Most Asian buyers are tapping inventories, switching fuels, and cutting some industrial demand to cover the shortfall in LNG supply."