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.

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.

Coal prices surged above $140 per ton, reaching their highest levels since October 2024, as prolonged disruptions to global oil and gas flows stemming from the Middle East conflict pushed power generators in major economies to rely more heavily on coal for electricity. Soaring natural gas prices are driving European countries to increase coal-fired generation despite rising output from renewable sources. European gas futures have climbed to three-year highs after Iran launched attacks on Qatar’s largest LNG export facility in response to an Israeli strike on Iran’s South Pars gas field. In Australia, New South Wales announced a ban on new coal mine applications as part of its net zero targets, further tightening supply. NSW exports most of its thermal coal to power stations in Japan, China, and Taiwan. Meanwhile, Indonesia has moved to allow miners to boost output following the recent price surge triggered by disruptions linked to the Iran conflict.