Coal Profits Surge as Iran War Disrupts Global Energy Supplies

Coal producers are enjoying a major boost in profits as the war involving the United States, Israel and Iran disrupts global oil and gas supplies.

South African coal producer Thungela Resources reported that its profits doubled in the first half of 2026, helped by higher coal production, rising prices and increased demand.

The conflict has disrupted energy supplies after Iran closed the Strait of Hormuz, a key route through which a significant share of the world's oil and liquefied natural gas shipments normally pass. With oil and gas supplies reduced and prices rising, several countries have turned to coal to maintain electricity generation.

Asian countries have been particularly affected because many rely heavily on energy supplies from the Gulf. Japan has eased restrictions on older coal-fired power plants, while South Korea has delayed plans to shut down some coal plants. Bangladesh, Thailand, the Philippines, Vietnam and Pakistan have also increased their use of coal.

Pakistan recorded a 90 percent increase in electricity generated from imported coal by July compared with the same period last year.

Coal prices have also climbed, with prices reaching about $131.85 per tonne in July, compared with $102.20 a year earlier. Indonesia remains the world's largest coal exporter, followed by Australia and Russia.

Despite the short-term increase in coal consumption, energy analysts say the global transition toward renewable energy remains on course. They argue that the current crisis highlights the risks of depending heavily on imported fossil fuels and could encourage countries to invest more rapidly in solar, wind and other clean energy sources.

Analysts also note that coal remains more expensive than many renewable-energy options in the long term, while coal consumption is continuing to decline in parts of Europe.

The energy crisis, however, shows that countries with limited renewable capacity may continue relying on coal when oil and gas supplies are disrupted.

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