Middle East Conflict Drives Global Coal Demand Higher
The International Energy Agency (IEA) has released its latest update on the coal sector, revealing that global coal demand is expected to rise by 1.2% in 2026 due to the conflict in the Middle East.
The disruptions caused by the war have driven up natural gas prices, prompting countries to turn to alternative sources like coal for electricity generation.
This has resulted in higher coal use in Europe, Japan, Korea, China, and other markets than previously expected, with China also increasing its consumption of coal for producing chemical products due to high oil prices.
The forecasted increase in global coal demand brings the world's consumption to a record 8.94 billion t, while coal production is expected to decline in 2026 after reaching a record high in 2025.