IEA: Strait of Hormuz blockade boosts global coal demand

(1) The International Energy Agency stated on Thursday that the blockade of the Strait of Hormuz has driven up global coal consumption. Due to the blockage of the strait resulting from Iran-related conflicts, liquefied natural gas supplies have dropped sharply, and prices have surged significantly. (2) Countries with gas-fired power plants and surplus coal-fired power generation capacity have increased their coal-fired power output. Coal consumption in markets such as Europe, Japan, South Korea, and China is higher than previously expected. (3) Previously, institutions had predicted a slight year-on-year decline in global coal demand, but forecasts have now been revised, projecting that global coal demand will grow by 1.2% in 2026, reaching a record high of 8.94 billion tons. (4) The IEA said that whether this trend will continue into 2027 depends on the status of the strait blockade; due to the situation, coal prices have already risen.