Coal prices declined to around $145 per ton, retreating from three-year highs as crude oil and LNG prices fell sharply amid growing optimism that diplomatic efforts to resolve the US-Iran conflict could gain traction. The pullback came on the heels of a Democratic sweep in the US midterm elections, a result seen as likely to constrain military spending in the Middle East.
President Donald Trump acknowledged that the war had contributed to Republican losses, while noting that there were no immediate plans to escalate attacks on Iran. Previously, coal prices had surged to multi-year highs as elevated LNG prices, driven in part by the Middle East conflict, prompted greater reliance on coal-fired power generation.
At the same time, the International Energy Agency projected in September that global coal demand would reach a record level this year, even as governments push for a shift toward cleaner energy and continue to shut down coal-fired power plants across Europe and North America.
