Coal Extends Decline on US-Iran Deal

2026-06-18 06:32 By Jam Kaimo Samonte 1 min. read

Thermal coal futures fell below $145 per ton, extending their retreat from near three-year highs after the US and Iran signed an interim peace agreement that paves the way for the reopening of the crucial Strait of Hormuz.

The development pushed energy prices lower and reduced incentives for fuel switching.

The agreement also includes the lifting of sanctions on Iranian oil exports, while negotiations on nuclear issues and potential additional economic incentives for Iran will follow.

The prolonged disruption had previously driven energy importers across Asia and Europe to seek alternatives to Persian Gulf natural gas, with Japan and South Korea notably increasing coal consumption during the conflict.

Meanwhile, coal prices had surged to multi-year highs earlier this month after Indonesia tightened export controls on key commodities, a move expected to delay shipments from the world’s largest coal exporter.



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Coal Extends Decline on US-Iran Deal
Thermal coal futures fell below $145 per ton, extending their retreat from near three-year highs after the US and Iran signed an interim peace agreement that paves the way for the reopening of the crucial Strait of Hormuz. The development pushed energy prices lower and reduced incentives for fuel switching. The agreement also includes the lifting of sanctions on Iranian oil exports, while negotiations on nuclear issues and potential additional economic incentives for Iran will follow. The prolonged disruption had previously driven energy importers across Asia and Europe to seek alternatives to Persian Gulf natural gas, with Japan and South Korea notably increasing coal consumption during the conflict. Meanwhile, coal prices had surged to multi-year highs earlier this month after Indonesia tightened export controls on key commodities, a move expected to delay shipments from the world’s largest coal exporter.
2026-06-18
Coal Retreats on US-Iran Peace Prospects
Thermal coal futures fell to around $145 per ton, retreating from near three-year highs as expectations of an imminent peace agreement between the US and Iran weighed on oil and natural gas prices, reducing incentives for fuel switching. The two countries are expected to sign the deal in Switzerland on June 19, with reports indicating it includes the reopening of the vital Strait of Hormuz, through which roughly one-fifth of global energy supplies flowed before the conflict erupted. The prolonged disruption had prompted energy importers across Asia and Europe to seek alternatives to Persian Gulf natural gas, with Japan and South Korea notably increasing coal consumption during the war. Meanwhile, coal prices had surged to multi-year highs earlier this month after Indonesia tightened export controls on key commodities, a move expected to delay coal shipments from the world's largest exporter.
2026-06-16
Coal Jumps as Indonesia Tightens Export Curbs
Thermal coal futures climbed to around $150 per ton, reaching their highest level since September 2023 after Indonesia tightened export controls on commodities, a move expected to delay coal shipments from the country. The decision came amid stronger seasonal demand, with summer heat boosting electricity consumption for air conditioning. Ongoing disruptions linked to the Middle East conflict also continued to support coal prices, as the prolonged closure of the Strait of Hormuz forced Asian and European energy importers to seek alternatives to natural gas supplies from the Persian Gulf. Japan and South Korea, in particular, have increased their consumption of coal since the outbreak of the war. Qatar’s Ras Laffan facility has declared force majeure, removing nearly 10.2 Mtpa of LNG supply to Asia, with the partial shutdown expected to last through late summer.
2026-06-09