Yancoal Australia (ASX:YAL) revised the 2026 annual cap for transactions under its coal sales agreement with Glencore to $750 million from $350 million, according to a Monday filing with the Australian bourse.

The revision comes as market instability arising from the Middle East conflict has raised the likelihood of Glencore purchasing coal on the spot market, per the filing.

Yancoal said its HVO Coal Sales joint venture with Glencore increased spot coal sales through the first half of 2026, and the annual cap requires an increase to ensure sufficient headroom remains for transactions to continue through the end of the year. All other terms of the agreement remain unchanged.

The aggregate transaction amount under the Glencore framework agreement was about $215 million for the six months ended June 30, Yancoal said.

Yancoal Australia shares gained 1% in recent Tuesday trade.