Oil prices surged to $70.92 per barrel after reports of potential U.S. strikes on Iranian military positions. Unrest in Iran caused by economic issues has led to thousands of deaths. The Iranian Rial has plummeted in value, exacerbating the crisis.

Commodity analysts predict a more positive outlook for the oil market in 2026. Demand expectations are being adjusted higher, with the International Energy Agency projecting a conservative growth of 930 kb/d. Low prices are impacting U.S. shale output growth, with some companies suspending drilling operations.

U.S. natural gas markets experienced a significant rally due to an Arctic storm causing supply-demand issues. Gas futures saw a triple-digit increase as cold weather led to infrastructure strain and disruptions. Traders betting on lower prices were forced to cover their positions, accelerating the price surge.

The IEA projects a global increase in LNG supplies, with North America expected to lead the growth. The U.S. LNG export capacity is expanding rapidly, with new projects set to come online by 2029. Last year, the U.S. accounted for the majority of global LNG investment approvals.

Read more at Yahoo Finance: Bearish Oil Glut Narrative Fades as Brent Breaks $70