South African thermal coal producer Thungela Resources has announced a doubling of its half-year profits, a significant financial gain attributed to the global energy crisis triggered by the ongoing United States-Israel war on Iran.

The conflict, which began with strikes on Tehran on February 28, has led to major disruptions in crude oil and natural gas supplies worldwide. This disruption has inadvertently created a boom for the coal industry, traditionally viewed as a less desirable fossil fuel due to its environmental impact.

Thungela Resources reported its substantial profit increase this week, with analysts pointing to the war's impact on energy markets as the primary driver. The surge in coal demand comes as several nations, particularly in Asia, have been compelled to reverse or delay their commitments to phasing out coal power.

The implications of this shift are far-reaching, potentially prolonging reliance on coal despite its known environmental costs. While the global push for clean energy transitions remains a stated objective, the immediate energy security concerns are leading countries back to more readily available, albeit dirtier, fuel sources.

Coal, despite its environmental drawbacks including water pollution from mining and significant carbon emissions when burned, remains a relatively cheap and abundant energy source compared to oil and natural gas, whose prices have skyrocketed. The closure of the Strait of Hormuz, a critical chokepoint for global oil and liquefied natural gas (LNG) shipments, has exacerbated this situation. In 2022, approximately 82 percent of oil and gas shipments through the strait were destined for Asia, with China, India, Japan, and South Korea being the top recipients.

Beyond the logistical challenges posed by the Strait of Hormuz closure, Gulf countries involved in or affected by the conflict have also faced direct impacts, such as Iranian strikes. Qatar, for instance, was forced to declare force majeure on its deliveries, further constricting supply chains and increasing the urgency for alternative energy sources.

Analysts note that global coal consumption was already on an upward trend in 2025, partly due to the energy demands of artificial intelligence data centers in regions like Eurasia and the United States, according to World Bank data. The current geopolitical situation has amplified this existing trend, creating a perfect storm for coal producers.

While the short-term financial gains for companies like Thungela Resources are undeniable, the long-term implications for climate goals remain a significant concern. The renewed reliance on coal raises questions about the pace and effectiveness of the global clean energy transition, even as analysts maintain that the fundamental trajectory towards renewable energy sources is unlikely to be derailed.