The Hormuz Strait is blocked, causing a shortage of oil and gas. The coal industry is reviving to fill the energy gap.

The coal industry is heating up again. The conflict in Iran has led to nearly a halt in shipping through the Strait of Hormuz, causing a disruption in about 20% of global liquefied natural gas supply. Countries are once again using this high-polluting but stable energy source. Last month, South Korea's coal-fired power generation increased by over 30%. In Europe, Italy has also put coal-fired power plants on standby to prepare for long-term energy shocks. As a major coal supplier in Asia, the spot price of Newcastle coal in Australia has risen by 12% since the conflict broke out. The benchmark coal price briefly exceeded $140 per tonne in mid-March, reaching a new high since the end of 2024, but far below the peak of $440 per tonne after the Russia-Ukraine conflict broke out in 2022. Tony Knutson, director of the coal market at consulting firm Wood Mackenzie, said, "Coal has become a buffer material for energy now. Compared to liquefied natural gas, it is less affected by geopolitical factors and can serve as a hedging tool. As long as the conflict continues and shipping through the strait is blocked, coal will fill the energy supply gap."