The Iran war has significantly increased the value of Gulf Coast propane relative to inland markets. Concerns over disruption to Middle East LPG flows through the Strait of Hormuz has pushed international buyers toward U.S. cargoes, strengthening Gulf Coast export demand and lifting Mont Belvieu propane prices relative to the key midcontinent hub in Conway, KS. Higher freight costs and strong export terminal utilization also have contributed to the move.
Since 2019, Mont Belvieu propane has averaged about 2.75 c/gal above Conway with winter heating demand occasionally narrowing or briefly reversing the spread. As shown in the graph below, the recent move from roughly 2.2 c/gal in May-December 2025 to nearly 9 c/gal last week reflects the unusually strong export pull on Gulf Coast barrels.
