Strait of Hormuz: Blockade drives global demand for coal
Due to the blockade of the Strait of Hormuz and the decline in liquid gas deliveries, global demand for coal is increasing massively.
Quick Look
- The blockade of the Strait of Hormuz in the Iran war leads to a decline in liquefied natural gas deliveries and higher prices.
- The IEA is forecasting a record global demand for coal of 8.94 billion tons by 2026.
AI-generated summary
Why It Matters
The International Energy Agency (IEA) analyzes global energy markets and trends.
The blockade of the Strait of Hormuz as a result of the Iran war is driving up global demand for coal.
The blockade is leading to a massive decline in liquefied gas deliveries, which is causing prices to rise sharply, said the International Energy Agency (IEA) in Paris. This has led countries with gas-fired power plants and free coal-fired power plant capacity to generate more electricity from coal. As a result, coal consumption in Europe, Japan, Korea, China and other markets is higher than previously expected.
As a result, global demand for coal - which was expected to decline slightly compared to last year - is now forecast to increase by 1.2 percent in 2026, pushing global consumption to a record 8.94 billion tons. Whether this trend continues in 2027 depends on whether the strait remains blocked. Given this development, coal prices would definitely have increased.
What to Watch
AI outlook — possibilities, not facts
Global coal demand will increase by 1.2 percent to 8.94 billion tons in 2026.
Likely · Within months
Open Questions
- How long will the Strait of Hormuz remain blocked?
- How much will coal prices continue to rise in 2027?
