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2026.03.0907:36:18UTC+00Coal Gains on Middle East Disruptions

Coal prices have climbed toward $140 per ton, hovering near their highest levels since November 2024, as the escalating conflict in the Middle East and resulting disruptions sharply increase global energy supply risks. Oil has also surged above $100 per barrel for the first time since 2022 after major Middle Eastern producers cut output while the Strait of Hormuz remains effectively closed. At the same time, the shutdown of Qatar’s massive liquefied natural gas (LNG) operations has intensified demand for fuel switching in the power sector. Qatar’s main LNG export hub, which supplies about 20% of global LNG, has never fully halted operations in its 30-year history. With many Asian economies heavily dependent on Qatari LNG, a prolonged disruption could force the region to ramp up coal-fired power generation. Coal resources are also taking on greater strategic importance for China, serving both as an energy buffer and as a critical feedstock for its chemical industry.

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