Asian economies are rapidly increasing coal-fired power generation to offset soaring gas prices and potential supply disruptions caused by the Iran conflict. The Strait of Hormuz, the critical Gulf shipping lane, has slowed to a near standstill since the US and Israel launched strikes on Iran, raising fears of long-term energy insecurity. Coal prices have surged 17 per cent since the war began, making it a relatively cheaper alternative to gas, which has jumped over 60 per cent. Countries like China, India, Japan, and South Korea are stockpiling coal and ramping up plants, despite environmental concerns.

Thailand and South Korea have even lifted restrictions on coal usage. Japan, the world's biggest LNG importer, is extending the operation of older, less efficient coal plants for a year to ensure stable power. India, reliant on Gulf LNG for 60 per cent of its supply, faces rising summer demand.

Analysts warn this crisis could cement coal's role as a 'safe last resort' for energy security in Asia.