Strait of Hormuz Blockade Drives Up Global Coal Demand

The ongoing blockade of the Strait of Hormuz has disrupted liquefied natural gas supplies, causing prices to surge. According to the International Energy Agency (IEA), this shortage is driving up demand for coal in various markets.

Countries with available coal-fired capacity and gas-fired power plants are turning to coal-based electricity generation to meet their energy needs. As a result, global coal consumption is projected to rise by 1.2% in 2026, reaching a record 8.94 billion tonnes.

The IEA notes that this trend may continue into 2027 if the blockade remains in place. However, it also warns that coal prices have already increased in response to these developments.