Coal demand forecast to hit record as Hormuz risks unsettle energy markets

Global energy markets have been unsettled by what France 24 describes as the US-Israel war on Iran, with countries reportedly turning to coal to reduce their exposure to possible shipping disruptions in the Strait of Hormuz.

The report does not establish that the strait has been blocked or that disruption has occurred. It frames coal use as an effort to limit vulnerability to potential interruptions affecting energy supplies.

The International Energy Agency forecasts global coal demand will rise by 1.2 per cent this year, reaching a record 8.94 billion tonnes.

Coal is a highly polluting power source, according to the supplied report. It does not identify which countries are increasing their use of coal or provide country-level figures for the reported shift.

The forecast comes as governments and energy markets respond to heightened regional security risks, although the supplied material provides no further breakdown of the IEA’s methodology or its regional implications.