Coal profits surge as Middle East conflict pushes nations toward the fuel

The war between the United States, Israel and Iran has disrupted crude oil and LNG flows, especially after Iran closed the Strait of Hormuz, a key shipping route. With oil and gas supplies constrained and prices climbing, several Asian nations have turned to coal to keep electricity grids running, raising global coal consumption. South Africa's thermal coal producer Thungela Resources announced that its profit for the first half of the year doubled, with headline earnings per share climbing to 4.80 rand, thanks to higher production at its Ensham mine in Queensland and increased sales in South Africa.

Production at Ensham rose 38 percent during the conflict period. Coal remains cheaper than oil, and despite its high carbon emissions, it is being used as a stop-gap while renewable capacity lags. Energy analysts note that while some regions are seeing short-term coal upticks, long-term declines continue elsewhere, and the current surge underscores the vulnerability of global energy systems to geopolitical shocks.