Hormuz Crisis to Push Global Coal Demand to Record High
Macron Calls for Another Emergency Oil Release as Europe Loses Supply Felicity Bradstock is a writer and journalist based in Mexico City.
She writes for energy websites and covers several other industries, as well as writing… The International Energy Agency expects coal demand to increase this year in response to ongoing oil and gas trade constraints stemming from the closure of the Strait of Hormuz.
Several countries have been forced to turn back to coal to fill the gap, as oil inventories are depleted and countries gradually expand their renewable energy capacity.
In itsmid-year update, the IEA predicted that coal use would likely increase in some regions of the world owing to higher natural gas prices in 2026.
The conflict in the Middle East and ongoing restrictions on trade via the Strait of Hormuz maritime trade corridor have driven up prices in recent months.
This has led to severe global energy disruptions, pushing oil and gas prices higher.
The massive reduction in LNG shipments through the Strait of Hormuz has led some countries to face energy shortages, requiring them to turn to other energy sources.
Japan, India, Bangladesh, the Philippines, South Korea, Thailand, Taiwan, China, and some European countries have been forced to increase their coal use to fill the gap.
In addition, some countries are not only turning to coal for power; China’s coal consumption for chemical product production has also increased in recent months due to high oil prices.
Coal consumption may increase further in some regions of the world in the coming months if aparticularly strong El Niño weather patternoccurs, as predicted.
Higher-than-normal temperatures and lower hydropower output could drive up power demand across Asia, in large markets such as India and Vietnam.
Global coal production matched a record high in 2025 but is expected to decrease slightly year over year in 2026.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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