Arabic version: ارتفاع أرباح الفحم مع تعطل إمدادات الطاقة

According to Al Jazeera, disruptions to crude oil and natural gas supplies during the United States-Israel war on Iran are pushing countries towards coal, lifting demand, prices and profits for producers.

Iran closed the Strait of Hormuz after strikes on Tehran began on February 28. About one-fifth of the world’s oil and liquefied natural gas supplies passed through the waterway in peacetime. Its closure has reduced supplies and sent oil prices higher, while coal remains cheaper than oil and more readily available.

Asian countries have increased coal-fired generation as Gulf energy infrastructure faces disruption. Japan lifted restrictions on older high-emission coal plants, South Korea delayed planned plant closures, and Bangladesh increased coal-powered electricity generation. Thailand, the Philippines and Vietnam have also raised coal generation, while Pakistan’s imported-coal electricity output was 90 percent higher by July than a year earlier.

Coal output could rise globally by 1.8 percent in 2026 from 2025 in a worst-case scenario, energy data company Ember said. Indonesia, the largest coal exporter, reversed plans to curb production in March. Its coal prices reached $131.85 per tonne in July, compared with $102.20 a year earlier.

South Africa’s Thungela Resources said half-year profits doubled from January to June compared with the same period in 2025, supported by higher production, demand and prices at its Ensham mines in Queensland and South African operations. The company said prices were likely to stay high as European and Asian markets prepare for winter. Analysts said the disruption also highlights the need for faster investment in clean energy and electrification.