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2026.07.0107:40:58UTC+00Coal Retreats to Pre-War Levels

Thermal coal futures fell below $130 per ton, returning to levels last seen before the outbreak of conflict in the Middle East, as ongoing peace talks between the US and Iran raised hopes for a durable settlement and a full reopening of the Strait of Hormuz. Investors are closely monitoring negotiations in Qatar between Washington and Tehran after a recent flare-up in tensions around this critical shipping corridor. Oil and natural gas prices have similarly retreated to pre-war levels, with analysts now projecting a global supply surplus as Middle Eastern output recovers, easing pressure for fuel switching. At the same time, China’s latest five-year plan reaffirmed its “all-of-the-above” energy strategy, calling for the expansion of both coal-fired power generation and renewable capacity. China remains the world’s largest clean energy investor while also leading global coal expansion, accounting for 78% of all new coal power capacity added worldwide in 2025.

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