Geopolitical tensions drive volatility in Far East steel and freight markets

Following the attacks by the US and Israel on Iran, market volatility increased sharply. Concerns over potential disruptions to LNG flows through the Strait of Hormuz heightened supply risks in energy markets, while the shift from gas to coal by power producers and industrial consumers triggered a rapid rise in global thermal coal prices. Consequently, the previously modest recovery trend intensified into a stronger price rally, driven by rising geopolitical risk premiums.