Coal is down by 8.83%

Coal climbed toward $140 per ton, approaching its strongest levels since November 2024 as fears of prolonged global supply disruptions from the Middle East conflict pushed energy prices higher. Brent crude futures surged back above $100 a barrel after Iran’s new supreme leader, Mojtaba Khamenei, pledged to keep the Strait of Hormuz effectively closed while Tehran intensified attacks on regional oil and transport facilities. US President Donald Trump also said preventing Iran from obtaining nuclear weapons and threatening the Middle East is more important than the cost of oil. Meanwhile, several major energy traders have begun declaring force majeure to customers after Qatar’s LNG shutdown rippled through global gas markets. Supply shocks in oil and gas typically increase demand for fuel switching in the power sector. 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 prices retreated toward $130 per ton after surging to as high as $150 earlier in the week, as falling oil prices eased fears of prolonged global energy supply disruptions. Oil prices dropped back below $90 per barrel as the US and other major economies moved to curb energy costs. However, hostilities in the Middle East continued with no clear end in sight and the Strait of Hormuz remained effectively shut. Meanwhile, the largest LNG export plant in Qatar has halted shipments for five consecutive days, the longest stretch since 2008, raising the risk of further gains in fuel prices. Supply shocks in oil and gas typically increase demand for fuel switching in the power sector. 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.

Coal decreased 8.83% to 131.1 USD/T