Middle East oil route disruption pushes Southern African nations toward greater coal use
The Gulf crisis has lifted coal prices, prompting Southern African exporters to lean more on coal despite renewable energy ambitions.
The ongoing disruption of oil flow through the Strait of Hormuz has caused coal prices to climb from $105 per tonne in January 2026 to $150 now, benefitting African coal exporters but also increasing their dependence on the commodity. With liquefied natural gas deliveries from the Arab-Persian Gulf drying up, large consumers like India and China have expanded coal imports throughout 2026. European nations further along their energy transition have temporarily re-opened coal-fired power stations to maintain electricity output.
Analyst Carlos Fernandez Alvarez of the International Energy Agency confirms that while prices remain high, they have not reached the 2022 peak of $400 per tonne seen after the Ukraine war began. The agency now expects global coal demand to rise this year, overturning its earlier forecast of a decline.
Why it matters
Higher coal use threatens climate goals and raises energy costs worldwide.
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