Iran War’s Energy Shock Threatens Fossil Fuel Dominance, Fuels Global Chaos

The war launched by the United States and Israel against Iran two months ago has done more than escalate regional violence—it has upended the global energy system in ways that could be permanent. The Strait of Hormuz, a narrow but critical chokepoint through which a fifth of the world’s oil and natural gas flow, has been effectively closed since early March. This blockade has sparked the largest energy crisis the modern world has ever seen, with 25 countries now facing critical shortages of road fuel, jet fuel, or heating oil.

Unlike the oil crises of the 1970s, this disruption arrives at a moment when renewable energy sources are finally becoming competitive alternatives. Selwin C. Hart, a special adviser to the U.N. Secretary-General, told a recent international conference that “renewables have changed the equation.” The plummeting costs of solar, wind, and other clean energy options mean countries can now realistically consider breaking their century-old dependence on fossil fuels.

Yet the future remains uncertain. While some nations are rushing to invest in renewables, others are falling back on coal—the dirtiest fossil fuel—to replace lost natural gas supplies. Coal’s ability to provide steady, around-the-clock power makes it a tempting fallback amid the chaos. Daan Walter, a lead researcher at Ember, cautions that the direction of the energy transition is still unclear.

The immediate losers are oil and natural gas exporters and importers alike. The Strait of Hormuz blockade has halted shipments from Iran, Iraq, Kuwait, Saudi Arabia, and Qatar—the latter a major LNG exporter whose gas infrastructure was damaged by Iranian drone attacks. Asian economies like Japan, Korea, and Singapore, heavily reliant on LNG for power generation, are especially vulnerable. With spare LNG capacity scarce worldwide, these countries have little choice but to turn back to coal, worsening the climate crisis.

The United States, as the world’s other major LNG exporter, has benefited from higher global prices and increased demand. But U.S. LNG plants are already running at full capacity, and building new ones takes years, limiting how much the U.S. can fill the gap. Anne-Sophie Corbeau of Columbia University notes that this uncertainty is shaking confidence in natural gas as a reliable fuel.

Governments across Asia have implemented emergency measures to reduce fossil fuel consumption—lowering speed limits, mandating remote work, and capping fuel prices to stave off unrest. Airlines have canceled flights, and economic ripples are spreading.

This energy crisis, born from a war manufactured by the Trump administration and its allies, reveals the fragility of a global system still addicted to fossil fuels. It also exposes the urgent need to accelerate the transition to clean energy—before more chaos and environmental damage become inevitable. The stakes could not be higher for democratic accountability and global survival.