Coal climbed toward $140 per ton, approaching its strongest levels since November 2024 as fears of prolonged global supply disruptions from the Middle East conflict pushed energy prices higher. Brent crude futures surged back above $100 a barrel after Iran’s new supreme leader, Mojtaba Khamenei, pledged to keep the Strait of Hormuz effectively closed while Tehran intensified attacks on regional oil and transport facilities. US President Donald Trump also said preventing Iran from obtaining nuclear weapons and threatening the Middle East is more important than the cost of oil. Meanwhile, several major energy traders have begun declaring force majeure to customers after Qatar’s LNG shutdown rippled through global gas markets. Supply shocks in oil and gas typically increase demand for fuel switching in the power sector. With many Asian economies reliant on Qatari LNG, the region may be forced to ramp up coal-fired power generation if the disruption persists.
