Coal continues to defy climate doomers who demand its replacement for power generation sooner rather than later. The latest sales figures affirm that dominance with global coal demand forecast to rise by 1.2 percent in 2026 to a record 8.94 billion tonnes due to the Middle East conflict and an almost insatiable global hunger for the dependable power source, the International Energy Agency (IAE) said.
Disruptions to oil and liquefied natural gas shipments through the Strait of Hormuz since the U.S.-Iran war started have driven up prices and encouraged higher electricity generation from coal in countries that have gas-fired power fleets and spare coal capacity, the IEA added in an update on the coal sector.
Higher coal use is most marked in Europe, Japan, Korea, China and other markets exceeding what previously expected.
Although virtually no coal shipments pass through the Strait of Hormuz – as the Middle East is neither a major producer nor consumer of coal – disruptions associated with the war have nonetheless affected coal markets by driving up natural gas prices due to the huge drop in liquefied natural gas (LNG) shipments through the troubled Strait, the IEA makes clear.
For its part, China’s use of coal leads the world and is in increasing demand for producing chemical products due to high oil prices at the expense of solar and wind generated “clean energy” sources.
U.S. coal consumption rose amid strong electricity demand, higher natural gas prices and policy support.
After reaching a record high in 2025, global coal production was expected to decline in 2026, but on current estimates might rise once again as one of the world’s most sought after commodities.
Together, these factors – along with tight supply – are contributing to higher coal prices around the world, the IEA report concludes.