Global coal demand set to increase this year amid Middle East conflict
According to the IEA’s Coal Mid-Year Update 2026, global coal demand is now forecast to rise by 1.2% in 2026 to a record 8.94 billion tonnes, reversing an expected decline. The Middle East conflict has driven up natural gas prices, prompting higher coal use in Europe, Japan, Korea, China and other markets, while a strong El Niño is expected to support demand in Asia. Global coal production is expected to decline in 2026 but remain above 9 billion tonnes.
Why it matters: This matters for energy markets because the Middle East conflict is reshaping global fuel choices, with coal demand reaching a record and prices rising.