FX.co ★ Coal Resumes Rally on Surging Energy Prices

Coal prices climbed toward $140 per ton, nearing their highest levels since November 2024, as mounting concerns over prolonged global supply disruptions tied to the Middle East conflict drove energy markets higher. Brent crude futures rebounded above $100 a barrel after Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz effectively closed while Tehran stepped up attacks on regional oil and transport infrastructure. US President Donald Trump stated that preventing Iran from acquiring nuclear weapons and destabilizing the Middle East takes precedence over concerns about oil prices. At the same time, several major energy traders have begun declaring force majeure to customers following Qatar’s LNG shutdown, which has sent shockwaves through global gas markets. Such supply shocks in oil and gas often spur fuel switching in the power sector. Given the heavy dependence of many Asian economies on Qatari LNG, a prolonged disruption could compel the region to significantly increase coal-fired power generation.