IEA: Global Coal Demand Hits Record High Amid Strait of Hormuz Disruptions

The International Energy Agency (IEA) has released its latest coal market report, predicting that global coal demand will reach a record high of 8.94 billion tons in 2026, a 1.2% year-over-year increase.

This projection marks a reversal from earlier predictions that coal demand would peak around 2024 and decline through 2030.

The primary driver behind the upward revision is the Strait of Hormuz situation, which has disrupted LNG shipments and sent natural gas prices soaring, prompting economies to accelerate their 'gas-to-coal' switch.

Regional divergence in coal demand is stark: India's consumption is expected to grow 4.2%, while South Korea's will increase by 6%. In contrast, Japan and the US are forecast to contract 1% and 7%, respectively.