Coal prices have surged to their highest in over two years, with European thermal coal jumping 26% to $133 per tonne since the Iran war began. Utilities across Europe and northeast Asia scramble for additional coal supplies as gas prices skyrocket following Middle East hostilities, raising concerns about energy security.

The crisis echoes Europe's 2022 energy scramble after Russia's invasion of Ukraine, when coal prices exceeded $400 per tonne. While Iran conflict has minimal direct impact on coal transportation, European gas prices have climbed 53%, forcing power providers to switch to more polluting coal plants.

Italy has signaled potential restarts of dormant coal facilities, while Bangladesh announced similar measures. Analysts warn prolonged Middle East tensions could push coal prices toward $250 per tonne, especially as Indonesia, the world's largest thermal coal exporter, prepares to implement reduced production quotas.