A fierce heatwave gripping large parts of Asia is straining coal and gas markets as surging demand for air conditioning collides with the energy crunch caused by the US-Israeli war against Iran, increasing the risk of a severe crisis with the hottest months of the year still to come.
In India, temperatures hit 47C across multiple states this month, driving electricity demand to a record 271 gigawatts for four straight days, a level that the grid authority had projected as the full-year ceiling for 2026-27. There are three full months of summer still to go.
