Coal Gains on Middle East Disruptions

2026-03-09 07:36 By Jam Kaimo Samonte 1 min. read

Coal prices climbed above $140 per ton, hitting their highest levels since November 2024 as the escalating conflict in the Middle East and resulting disruptions significantly heightened global energy supply risks.

Oil also surged above $100 for the first time since 2022 after major Middle Eastern producers curtailed output as the Strait of Hormuz remains effectively shut.

In addition, the shutdown of Qatar’s massive liquefied natural gas production has boosted demand for fuel switching in the power sector.

Qatar’s main LNG export hub supplies about 20% of global LNG and has never fully halted operations in its 30-year history.

With many Asian economies reliant on Qatari LNG, the region may be forced to ramp up coal-fired power generation if the disruption persists.

Coal resources are also gaining strategic importance for China, both as an energy buffer and as a key feedstock for the chemical industry.



News Stream
Coal Holds Near 17-Month Highs
Coal strengthened above $140 per ton, hovering near its highest levels since October 2024 as uncertainties over diplomatic efforts to end the Iran war kept a risk premium in energy prices. In the latest developments, President Donald Trump extended a deadline to attack Iranian energy infrastructure for 10 days to allow for negotiations, though the Pentagon is reportedly looking to send up to 10,000 additional ground troops in the Middle East. Coal prices have surged more than 20% since the Iran war began, as prolonged disruptions to global oil and gas flows forced power generators in major economies to rely more heavily on coal. Japan has joined other nations, signaling plans to increase the use of coal-fired power plants to cope with the energy shock from the Middle East conflict.
2026-03-27
Coal Steadies on Mideast Uncertainty
Coal held around $140 per ton, pausing a recent decline as investors navigated uncertainty over diplomatic efforts to end the Middle East conflict. The US maintained that peace talks are ongoing, with the Trump administration reportedly sending a 15-point proposal to Iran aimed at resolving the conflict. However, Tehran indicated it has no intention of holding talks with Washington and plans to reject a US ceasefire offer, instead countering with a five-point plan granting it control over the Strait of Hormuz. Coal prices had surged about 20% since the Iran war began, as prolonged disruptions to global oil and gas flows forced power generators in major economies to rely more heavily on coal for electricity. Elevated natural gas prices are also prompting European countries to increase coal-fired generation despite rising output from renewable sources.
2026-03-26
Coal Retreats on Mideast De-escalation
Coal fell to around $140 per ton, pulling back from 17-month highs as energy prices retreated sharply on signs of a potential de-escalation in the Middle East conflict. President Donald Trump postponed planned strikes on Iran’s energy infrastructure for five days and said productive talks with the country are underway. However, Iran denied engaging in any negotiations with the US, dismissing Trump’s announcement as an attempt to manipulate financial markets. Coal prices had surged more than 20% since the Iran war began, as prolonged disruptions to global oil and gas flows forced power generators in major economies to rely more heavily on coal for electricity. Elevated natural gas prices are also prompting European countries to increase coal-fired generation despite growing output from renewable sources.
2026-03-24