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31.03.202607:39:27UTC+00Coal Set to Gain Over 20% in March

Coal prices climbed above $140 per ton and were on track to gain more than 20% in March, marking the steepest monthly increase since May 2022, during the peak of the Russian invasion of Ukraine. The rally reflects a persistent risk premium across energy markets stemming from the prolonged conflict in the Middle East, which has led power producers in Asia and Europe to increase their dependence on coal.

Japan has joined other countries in signaling plans to expand coal-fired power generation to cushion the energy shock from the war involving Iran. At the same time, President Donald Trump is reportedly willing to halt the US military campaign against Iran even without a full reopening of the Strait of Hormuz, a stance that could leave Tehran with greater leverage over the strategic chokepoint. Iran is also said to be preparing actions that could disrupt shipping in the Red Sea, heightening the risk that two of the world’s critical trade and energy corridors could be effectively severed.

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