Coal Retreats to Pre-War Levels

2026-07-01 07:40 By Jam Kaimo Samonte 1 min. read

Thermal coal futures fell below $130 per ton, returning to levels last seen before the Middle East conflict erupted as continued peace talks between the US and Iran raised hopes for a lasting resolution and the full reopening of the Strait of Hormuz.

Investors are closely watching the latest developments in negotiations between Washington and Tehran in Qatar following a recent flare-up in hostilities around the key shipping route.

Oil and natural gas prices have also retreated to pre-war levels, with analysts forecasting a global supply surplus as Middle Eastern production rebounds, reducing the need for fuel switching.

Meanwhile, China’s latest five-year plan reaffirmed its "all-of-the-above" energy strategy by expanding both coal-fired power generation and renewable energy.

China remains the world’s largest investor in clean energy while continuing to lead global coal expansion, accounting for 78% of new coal power capacity added worldwide in 2025.



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Coal Retreats to Pre-War Levels
Thermal coal futures fell below $130 per ton, returning to levels last seen before the Middle East conflict erupted as continued peace talks between the US and Iran raised hopes for a lasting resolution and the full reopening of the Strait of Hormuz. Investors are closely watching the latest developments in negotiations between Washington and Tehran in Qatar following a recent flare-up in hostilities around the key shipping route. Oil and natural gas prices have also retreated to pre-war levels, with analysts forecasting a global supply surplus as Middle Eastern production rebounds, reducing the need for fuel switching. Meanwhile, China’s latest five-year plan reaffirmed its "all-of-the-above" energy strategy by expanding both coal-fired power generation and renewable energy. China remains the world’s largest investor in clean energy while continuing to lead global coal expansion, accounting for 78% of new coal power capacity added worldwide in 2025.
2026-07-01
Coal Extends Decline on US-Iran Deal
Thermal coal futures fell below $130 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