surging

Crude oil and natural gas supplies have been disrupted worldwide by the United States-Israel war on Iran, but one energy sector appears to be cashing in – coal.

This week, South Africa’s thermal coal producer Thungela Resources said it had doubled its half-year profits as the war has forced more countries to buy the fuel.

Although abundant and relatively cheap to produce, coal is considered one of the dirtiest fossil fuels.

Mining it causes water pollution, and burning it releases enormous amounts of carbon into the atmosphere, which contributes to global warming.

In recent months, several countries, especially in Asia, have reversed or delayed promises to scale back on coal production.

Global coal consumption was already rising in 2025 with the Eurasia region and the US using the fuel to power artificial intelligence data centres, according to the World Bank.

Here’s what we know:

Why is more coal being used?

The US-Israel war on Iran has triggered a global energy crisis. Soon after strikes on Tehran began on February 28, Iran closed the Strait of Hormuz, through which about one-fifth of the world’s oil and liquefied natural gas (LNG) supplies were shipped during peacetime.

Negotiations to reopen the strait are ongoing.

Its closure has reduced oil and gas supplies and caused oil prices to soar, prompting many countries to fall back on the most readily available alternative to keep the power on – coal.

While coal prices have also risen, the fuel is still much cheaper than oil – and is more readily available.

No region has been more impacted than Asia, which largely depends on the Gulf for its energy needs. About 82 percent of oil and gas shipments through the Strait of Hormuz went to Asia in 2022, according to the US Energy Information Administration. China, India, Japan and South Korea were the top destinations.

Besides being unable to ship exports through the strait, Gulf countries caught up in the conflict have also been badly impacted by Iranian strikes. Qatar, for example, was forced to declare force majeure on its delivery contracts in March when Iranian drones hit its Ras Laffan oil facility – the world’s largest LNG complex – forcing it offline. Iran’s attacks had knocked out 17 percent of Qatar’s LNG exports by March, state officials said.

Similarly, the United Arab Emirates’s Das Island LNG terminal, Fujairah oil terminal, Ruwais Refinery Complex and other energy sites have been attacked during the conflict. Facilities in Saudi Arabia and Oman have also been hit.

Where has coal use increased?

According to an analysis by the energy data company Ember, coal output will rise globally by 1.8 percent by the end of 2026 compared with 2025 in a “worst-case” scenario.

This represents a notable uptick considering that countries are meant to be transitioning away from coal, experts said.

Since the war began, several Asian countries have announced plans to increase coal-fired electricity generation.

Japan has lifted restrictions on older, high-emission coal plants to cope with the energy shocks while South Korea has delayed the shutdown of coal-powered plants it promised to wind down by 2040.

In Bangladesh, the government at first imposed power cuts, closed universities and rationed fuel sales for vehicles before announcing it had ramped up coal-powered electricity generation.

Thailand, the Philippines and Vietnam have also increased coal-powered electricity generation to preserve dwindling gas reserves.

In Pakistan, data from the National Electric Power Regulatory Authority showed that by July, electricity generated from imported coal had risen by 90 percent compared with the same period the previous year.

China and India already consume 70 percent of the world’s coal and are also major producers. In India, where electricity demand is increasing partly due to more intense heatwaves, the government plans to launch several new coal-mining projects that will see global supplies increase by 2.5 billion tonnes a year, according to the Global Energy Monitor.

Germany also said it won’t jeopardise electricity generation because of earlier climate promises it made while Italy has pushed back its coal phase-out plans from late 2025 to 2038.

Who is making a profit from coal?

Indonesia is the top coal exporter by a wide margin, followed by Australia and Russia.

In March, Jakarta reversed previous plans to curb coal production and reduce oversupply in a bid to benefit from the rising prices. Prices were set at $131.85 per tonne in July, compared with $102.20 in the previous year.

South Africa’s Thungela, meanwhile, reported doubled profits from January to June, compared with the same period of 2025, driven largely by higher production from its Ensham mines in Queensland as well as higher demand and higher prices at both Ensham and its South Africa operations.

Production at Ensham rose by 38 percent in the first half of the year – during the peak of the conflict – to 2.2 tonnes, compared with 1.6 tonnes in the previous period.

The company reported 4.80 South African rand ($0.30) in headline earnings per share – or HEPS, a primary metric of profitability used in South Africa. That’s up from 1.92 rand ($0.12) in June last year.

In a statement, Thungela said prices will likely remain high as European and Asian markets prepare for winter.

What does this mean for the drive for clean energy?

In 2021, more than 40 countries, including Indonesia and Vietnam, promised to scale back coal use at the COP26 global climate summit. India and China did not sign up, however. Last year, South Korea joined the Powering Past Coal Alliance, which helps coal-dependent economies transition away from the fuel.

However, the Middle East crisis has upset those plans largely because many countries do not have sufficient renewable energy-generating capacity to fall back on, said Nick Hedley, an energy transition analyst at South Africa-based Zero Carbon Analytics.

“For the likes of Bangladesh, it’s easy to lift coal use when global gas supplies are disrupted because the country invested heavily in coal infrastructure in recent decades, and much of that capacity has been sitting idle,” he said.

“Coal becomes cheaper than imported gas when gas prices surge. Importantly, coal still cannot compete with renewables on cost,” Hedley added.

It’s not all doom, however. Analysts noted that upticks in some places are being offset by long-term declines in coal use in places like Europe.

China’s domestic coal production also fell this year as the government tightened oversight following a deadly explosion in May at the Liushenyu coal mine, where 82 people died. Beijing has also made large investments in renewables.

In addition, the breakdown of global fossil energy supply chains could make clean alternatives more competitive and force more countries to invest in them, Hedley pointed out.

“The lesson here is that Asian countries need to speed up their shift to clean energy and electrification to safeguard themselves against future global crises,” he concluded.

WASHINGTON — U.S. retaliatory strikes against Iran will continue after its forces shot down an American helicopter, President Trump said Wednesday, accusing the Islamic Republic of stringing him along over months of negotiations to end the war.

The prospect of a renewed U.S. air campaign cast fresh doubt on the viability of a ceasefire between the United States and Iran that has largely held since April, when the two sides reached a tenuous truce, pausing weeks of fighting. Trump’s decision to resume attacks comes after an exchange of fire between Israel and Iran threatened to spiral into open war over the weekend.

The administration has presented Trump with options to expand U.S. targets beyond the immediate area around the Strait of Hormuz to Iranian power plants across the country, an escalation that will open the president up to accusations he is targeting civilian infrastructure, according to a defense official familiar with the matter.

Speaking with reporters in the Oval Office, Trump encouraged the Iranians to accept a framework agreement negotiated between the two sides, and suggested that additional military action might compel Tehran to accept a final truce.

“We hit them hard yesterday, and we’re gonna hit ‘em again hard today,” Trump said. “And we’ll see what happens with the deal. We were really close to a deal, but they keep tapping us along — they keep playing us for suckers.”

The president’s remarks came a few hours after Trump posted on his social media website that Iran “will have to pay the price” for taking too long in negotiating a peace deal.

When pressed by reporters to elaborate, Trump said he meant that bombing would resume but declined to say whether that would include strikes on Iranian power plants and bridges, a threat he has repeatedly issued during the war.

The ongoing conflict, which is in its fourth month, has left a mark on the global and domestic economy. The U.S. Bureau of Labor Statistics reported Wednesday that inflation accelerated in May, driven by a surge in energy prices linked to the war with Iran.

The consumer price index rose 0.5% on a seasonally adjusted basis — the largest monthly increase in three years — pushing the annual inflation rate to 4.2%.

Asked whether he was concerned about the inflation numbers, Trump told reporters that the “numbers were great.”

“You know what I really love? I love the inflation. You know why? Because as soon as this war is over…,” Trump said, without finishing the thought.

The remark prompted near instantaneous news releases from Democratic operatives, as well as the party war room, which sent out a statement accusing Trump of mishandling a reckless war that has devastated the economy in the process.

“Donald Trump’s disastrous economic agenda and deadly and costly war with Iran have made life unbearable for millions of Americans,” Kendall Witmer, the Democratic National Committee’s rapid response director, said in a statement.

“Working families are shouldering skyrocketing costs for basic goods, with their wages being eaten up by Trump’s soaring inflation,” she added. “On the campaign trail, Trump promised to ‘defeat inflation,’ and to lower costs on ‘Day One,’ but two years later, Trump can’t get a handle on his war of choice with Iran as he tanks the economy back home.”

Trump then told reporters about a secret military mission to ensure safe passage for oil tankers through the Strait of Hormuz, one of the world’s most important commercial waterways. He said the operation had secured the passage of more than 100 million barrels of oil through the strait since it began.

“We took out, the other night, 22 ships late at night with no lights because they don’t have any radar because we blasted the crap out of it,” Trump said.

A couple of hours later, Trump wrote in another post that the military operation had been “wildly successful,” and that it proved the United States — not Iran — was in control of the Strait of Hormuz.

“Their military is defeated, and their economy is lost,” he wrote. “It’s over for Iran!”

Over months of diplomacy with Iran, Trump has sought to avoid a return to conflict, often seeking de-escalation when fighting has flared — and repeatedly pressuring Israel to minimize its attacks in Lebanon, where it continues to battle the militant group Hezbollah, a proxy of Iran.

Israeli strikes continued Wednesday, according to local news reports, while Hezbollah said it carried out attacks on Israeli troops stationed in southern Lebanon.

Speaking to journalists in the Oval Office, the president implied he was losing patience with Iranian tactics at the negotiating table.

“I gave them a break, at the request of Pakistan,” he said. “They still are working on trying them to do what’s right. But we want a deal that’s meaningful. We want a deal that works.”

“It was just tap, tap, tap,” the president added. “I don’t know what they’re doing.”