Svelland Capital Director Nadia Martin Wiggen warns energy markets face unprepared vulnerability amid Iranian attacks on GCC nations. These retaliatory strikes against US and Israeli actions threaten global energy flows, particularly through the Strait of Hormuz, a critical maritime passage for oil and gas shipments worldwide. Markets have failed to adequately price in this geopolitical risk.

The most immediate consequence will affect LNG markets, where current stockpiles remain depleted following the winter heating season. Wiggen emphasizes the confluence of low inventories and heightened geopolitical tensions creates a precarious situation for energy prices. This combination could trigger significant volatility in natural gas markets across multiple continents.

Energy companies should reassess supply chain strategies amid growing Middle East tensions. The market's lack of preparedness for such disruptions reveals critical vulnerabilities in global energy infrastructure. Investors should monitor shipping routes and storage levels as the situation develops, with particular attention to LNG import-dependent markets in Asia and Europe.