{
  "id": 6618615,
  "title": "Coal demand to rise 1.2% as Hormuz closure drives gas prices: IEA",
  "url": "https://urgent.news/2026/09/10/coal-demand-to-rise-1-2-as-hormuz-closure-drives-gas-prices-iea",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-10T16:45:51.000Z",
  "source": {
    "name": "Mining.com",
    "slug": "mining-com",
    "url": "https://www.mining.com/coal-demand-to-rise-1-2-as-hormuz-closure-drives-gas-prices-iea/"
  },
  "original_language": "en",
  "account": "Global coal demand is projected to increase by 1.2% in 2026, according to the latest update from the International Energy Agency (IEA). This rise is primarily driven by conflicts in the Middle East and disruptions at the Strait of Hormuz, which have led to a 1.2% surge in global coal consumption to a total of 8.94 billion tonnes. The IEA attributes this revision to higher gas prices, altered weather patterns, and increased coal-fired generation in countries with surplus capacity. The disruption has had a particular impact on liquefied natural gas (LNG), which competes with coal for power generation. Although coal shipments do not pass through Hormuz, the restrictions on LNG flows through the waterway have tightened gas supplies and escalated prices, thereby enhancing coal's competitiveness.\n\nThe IEA highlights that this shift underscores coal's enduring role as a fallback fuel when other energy sources are disrupted. Coal demand has been on the rise in several regions, including Europe, Japan, South Korea, China, and other countries that possess gas-fired power fleets and surplus coal capacity. Additionally, weather conditions are contributing to the demand for coal. The IEA anticipates an unusually strong El Niño pattern this year, which will heighten cooling requirements while simultaneously decreasing hydropower generation, thereby further stressing electricity systems.\n\nThe future of global coal demand hinges on the duration of the Middle East disruption. If tensions subside and LNG shipments resume, enabling gas prices to fall, global coal demand is projected to decline by 0.4% in 2027, amounting to 8.91 billion tonnes. However, if the disruption persists, coal usage may continue to rise. The IEA anticipates that coal production will decrease in 2026 following safety inspections in response to a significant mine accident, but production is expected to remain above 9 billion tonnes for a third consecutive year. Global coal prices have escalated throughout the first half of the year, with occasional peaks reaching $150 per tonne. The IEA predicts that the Middle East crisis will stimulate global coal trade and aid in stabilizing the market, increasingly linking its outlook to geopolitical developments far removed from the primary producing regions.",
  "summary": "A new update by the IEA puts coal demand back on the rise following the ongoing conflict in the Middle East.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}