Marketplace Morning Report What war in the Middle East is costing the U.S.
Mar 11, 2026
Elizabeth Troval, a reporter on energy markets, explains how Strait of Hormuz disruptions squeezed global LNG supplies and tightened markets. Kent Smetters, a Wharton professor and budget modeler, breaks down the roughly $800 million daily cost of U.S. military operations and how that spending could affect borrowing and the economy. Short takes on shifting LNG buyers and price pressures follow.
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Ships Hit But Crews Safe In Strait Of Hormuz
- Several cargo ships were hit in the Strait of Hormuz but did not sink and crews are safe.
- Iran laid mines earlier, prompting U.S. strikes on Iranian mine-laying boats and effectively restricting the strait to non-Iranian traffic.
LNG Market Tightness From Strait Disruptions
- Disruption in the Strait of Hormuz removed about a fifth of global LNG supply, intensifying competition between Europe and Asia.
- Elizabeth Troval explains Asia is buying LNG that would have gone to Europe while Europe refills winter-depleted inventories.
Sustained Conflict Could Force Demand Contraction
- If the conflict continues, demand must fall to match constrained supply, which would occur through much higher prices.
- Laurent Rousekis and Lindsay Schneider note high prices could push poorer Asian countries out of the market while wealthier buyers absorb supply.