Cheniere Energy Stock Enters Overbought Territory on Strait of Hormuz Rally. Is It Too Late to Buy LNG Here?

Cheniere Energy Stock Enters Overbought Territory on Strait of Hormuz Rally. Is It Too Late to Buy LNG Here?
Cheniere Energy (LNG) stock pushed meaningfully higher, hitting an all-time high of nearly $297 today following a missile attack on Qatar’s Ras Laffan industrial complex.
The price action drove LNG’s relative strength index (14-day) into the early 80s, signaling deeply overbought conditions that often precede a sharp correction.
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Year-to-date, Cheniere stock is now up more than 40%, but there’s reason to believe that this LNG exporter will rip higher from here in 2026.
Significance of the Ras Laffan Incident for Cheniere Stock
Iran’s attack on the Ras Laffan terminal is structurally bullish for LNG shares because it eliminates a huge chunk of global supply, effectively driving a sharp increase in international spot prices.
With nearly 20% of Qatar’s export capacity now sidelined for years, European and Asian utilities are forced to pivot toward reliable U.S. Gulf Coast supply to mitigate energy security risks. This shift allows Cheniere to capture higher margins at its Sabine Pass and Corpus Christi facilities.
Moreover, the multi-year delay of the North Field East expansion creates a long-term supply deficit, positioning Cheniere to lock in lucrative long-term contracts as the primary alternative for “safe-haven” liquified natural gas.
A 0.79% dividend yield makes LNG even more attractive to own in 2026.
Why Are LNG Shares Poised to Rally Further in 2026?
Beyond the Iran war, Cheniere Energy shares remain attractive as a long-term holding due to the firm’s aggressive capital allocation and expanding global footprint.
LNG has negotiated an expansion to its 15-year agreement with Thailand’s PTT, increasing annual deliveries to 1.3 million tonnes through 2041, which strengthens long-term visibility for investors.
Additionally, the company demonstrated its ability to secure low-cost growth as it closed $1.75 billion in long-dated senior notes to fund the Corpus Christi expansion.
Most importantly, Cheniere’s board has recently authorized another $10 billion in share repurchase, signaling massive confidence in future cash flows.
How Wall Street Recommends Playing Cheniere Energy
Despite an extremely overbought RSI, Wall Street firms remain bullish as ever on LNG stock for the next 12 months.