South Africa to Australia: Why coal profits are surging during Iran war

What the report says

Coal producers are seeing stronger earnings as the US-Israel war on Iran disrupts oil and liquefied natural gas flows, prompting some countries to rely more heavily on coal for electricity. In an Aug. 19, 2026 report, Al Jazeera said the closure of the Strait of Hormuz and damage to energy infrastructure in the Gulf have tightened global gas supplies and lifted prices, making coal a more available short-term substitute in parts of Asia and beyond.

The article highlighted South Africa’s Thungela Resources, which said this week that its half-year profit had doubled compared with the same period in 2025. Al Jazeera reported that higher output at its Ensham mine in Queensland, along with stronger demand and better prices in both Australia and South Africa, helped drive the increase. The company also said it expected prices to remain elevated ahead of winter in Europe and Asia.

Al Jazeera said the energy shock has led several governments to slow or reverse coal phase-out plans. It cited policy changes or increased coal-fired generation in Japan, South Korea, Bangladesh, Thailand, the Philippines, Vietnam, Pakistan, Germany and Italy. The report also noted that Indonesia reversed earlier efforts to curb coal production as prices climbed.

At the same time, analysts quoted by Al Jazeera said the broader clean-energy transition is still underway, even if the crisis has exposed gaps in renewable capacity and energy security. The article framed the surge in coal use as a reminder that many countries remain dependent on fossil fuels when gas supplies are disrupted, while long-term demand trends in some regions continue to point toward lower coal use.