TEHRAN- According to a report published Sunday by The Wall Street Journal, countries around the world are returning to the highly polluting but reliable fossil fuel after the Iran war effectively shut the Strait of Hormuz, severing approximately 20% of global liquefied natural gas (LNG) supplies.

The report highlights that Taiwan is restarting idled coal-fired power plants, while South Korea boosted its coal-generated electricity by more than a third last month. In Europe, Italy has placed its coal plants on standby as it braces for a prolonged energy shock.

The Wall Street Journal notes that spot coal prices at Australia’s Newcastle port—a key supplier to Asia—have jumped 12% since the war began. The benchmark briefly topped $140 a metric ton in mid-March, reaching its highest level since late 2024. However, this remains far below the $440 peak seen following Russia’s invasion of Ukraine in 2022.

That previous crisis saw Europe lead a global return to coal. But this time, the shift is most pronounced in Asia, where nations face imminent gas shortages.

The newspaper reports that almost 90% of LNG volumes exported via the Strait of Hormuz typically go to Asia. Since the war started, however, only three LNG ships have passed through the waterway. The last Qatari cargo destined for Asia left the Persian Gulf before the war, arriving in China on March 20.

According to data firm Vortexa, cited by The Wall Street Journal, the moving daily average of Asian LNG imports dropped to a six-year low last month—levels not seen since the height of the Covid-19 pandemic.

The report details that Taiwan, which normally generates half its electricity from LNG (with a third of that fuel coming from Qatar), is now restarting two coal-fired generators. The state-run utility Taipower explicitly cited the war’s impact and the "continuing risk" to LNG supplies in its announcement.

Similarly, India has issued an emergency coal directive forcing imported-coal plants to maximize output ahead of a hotter-than-normal summer. In late March, the state of Gujarat ordered Tata Power to restart an imported-coal facility.

Data from Electricity Maps, also quoted by the Journal, shows that South Korea generated 12.1 terawatt-hours of coal power in March and 10.7 terawatt-hours in April—increases of 36% and 39% respectively from a year ago. Thailand, meanwhile, has restarted two coal units at a power plant to offset higher gas costs.

The newspaper notes that Europe has seen less switching from gas to coal so far, partly due to its investments in renewables and diversified gas imports. Carbon emissions are also more expensive to produce in Europe.

Nevertheless, the LNG crunch is prompting caution. Italy’s energy minister said in March that the country’s coal plants—currently on standby—could be reactivated if the West Asian conflict triggers an energy crisis. Italy, one of Europe’s most gas-reliant economies (gas accounts for 40% of its energy supply), has already delayed its coal phaseout to 2038.

German Chancellor Friedrich Merz also raised the possibility last month of delaying individual coal plant closures in the event of a supply shortage.

Quoting Martin Senior, head of LNG pricing at Argus Media, The Wall Street Journal concludes that analysts now expect global demand for seaborne coal to increase this year rather than plateau.

“Burning coal instead of gas for most countries is mostly a question of price,” Senior told the Journal. “Some countries like Japan and South Korea can give priority to gas burn over coal for pollution reasons, but should gas prices remain elevated, they may continue to burn coal instead.”