Has The Iran War Amplified Coal’s Role In Asia’s Energy Mix?
Key takeaways
- Markets Has The Iran War Amplified Coal’s Role In Asia’s Energy Mix?By Gaurav Sharma,
- Forbes contributors publish independent expert analyses and insights.
- That includes the continent’s two major economies - China and India - both with huge renewable energy footprints.
Markets Has The Iran War Amplified Coal’s Role In Asia’s Energy Mix?By Gaurav Sharma,
Forbes contributors publish independent expert analyses and insights. Gaurav Sharma is a London-based analyst who covers energy & ESG.Follow Author Jun 19, 2026, 01:50pm EDTJun 19, 2026, 03:17pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Summary The Iran War's disruption of Middle Eastern LNG supplies has unexpectedly fueled a significant resurgence in coal demand across Asia. Nations like China, India, South Korea, and others are increasingly turning to coal for power generation as LNG prices spike due to a substantial supply gap. Qatar's damaged Ras Laffan facility alone removed over 10 mtpa of LNG, pushing Asia spot prices to near three-year highs. Rystad Energy estimates 90 terawatt-hours have shifted to coal, projecting an incremental 70 million tons of coal consumption in 2026. Experts call this a "reality check" for the energy transition, highlighting coal's role as a necessary fallback until renewable infrastructure and grid flexibility are fully established.
Employees work on a freight train loaded with coal at Jiangxi Coal Reserve Center, Jiujiang, Jiangxi Province of China. (File Photo: VCG/VCG via Getty Images)VCG via Getty ImagesThe disruption of liquified natural gas supplies from the Middle East to the high energy demand centers in Asia in the wake of the Iran War have benefitted one alternative fuel medium in particular - coal. And it may well have amplified its near-term footprint too.