U.S. oil and gas: Asia seeks supplies after Iran war to cut reliance

U.S. Interior Secretary Doug Burgum said Asian buyers are seeking more U.S. oil and gas after the Iran war highlighted vulnerabilities in shipments through the Strait of Hormuz, signaling a shift toward Western Hemisphere supplies.

The trend has emerged most clearly among Japan, South Korea and Taiwan, whose energy imports rely heavily on flows transiting the Strait of Hormuz. Officials and industry sources in the region have discussed expanding crude and LNG purchases from the United States and exploring longer-term contracts to secure supply, though logistical constraints and cost implications remain significant.

Markets have already reacted: tanker rerouting, higher insurance and freight costs, and concerns about chokepoint disruption have driven short-term spikes in oil benchmarks and tightened near-term LNG availability in Asia. Traders and refiners are watching shipment patterns closely as risk premiums and volatility are re-priced into energy contracts.

Strategically, the move aligns with U.S. policy efforts to bolster American energy exports and reduce global reliance on Middle Eastern sources. Projects such as proposed Alaska LNG and expanded U.S. LNG train capacity are central to that vision, but physical export capacity, port infrastructure and long-term offtake agreements will determine how fast Asia can pivot.

Analysts expect the shift to increase demand for U.S. export capacity and to encourage more long-term LNG contracts from Asian buyers if Hormuz disruptions persist. In the near term, markets should expect heightened price sensitivity to Gulf security developments; over the medium term, a sustained reallocation toward U.S. supplies would influence investment flows into liquefaction and shipping infrastructure. Key indicators to monitor include U.S. export volumes, progress on large export projects, and developments affecting Strait of Hormuz transit.