Coal prices have fallen below $130 per ton, retreating from the 17-month high of $146.50 reached on March 20 to their lowest level in more than seven weeks. The decline comes as renewed prospects for US–Iran negotiations have raised expectations that energy shipments through the Strait of Hormuz could resume.
Traders are closely watching diplomatic developments, with the key shipping corridor still largely closed but widely viewed as essential for restoring supply. Any easing of disruptions to gas flows could lessen the need for gas-to-coal switching in power generation.
Even so, the protracted conflict in the Middle East continues to inject a risk premium into energy markets, prompting utilities in Asia and Europe to lean more heavily on coal. Despite the latest pullback, coal prices remain nearly 9% higher than they were before the war’s onset in early March.
