Market brief · Economy & rates

Hormuz Crisis to Push Global Coal Demand to Record High

The International Energy Agency expects coal demand to increase this year in response to ongoing oil and gas trade constraints stemming from the closure of the Strait of Hormuz. Several countries have been forced to turn back to coal to fill the gap, as oil inventories are depleted and countries gradually expand their renewable energy capacity. In its mid-year update, the IEA predicted that coal use would likely increase in some regions of the world owing to higher natural gas prices in 2026. The conflict in the Middle East and ongoing restrictions…