Thanks to the war in Iran and the closure of the Strait of Hormuz as a passageway for oil, renewables have gained recognition as safer, less volatile alternatives to fossil fuels. They look poised to usher in a green transition.
Before the Middle East conflict, around a fifth of the world’s oil and gas flowed through the Strait of Hormuz.
As the Iran war drags on past the 100-day mark on Sunday, there are signs, but no guarantee, that it is now over. Regardless, the world is moving to secure alternative fuel sources—and with good reason. The United Nations reports the war has affected more than 80 per cent of the global population that lives in net-importing fossil fuel countries.
But in oil’s absence, renewables are gaining recognition on the world stage as safer, less volatile alternatives to fossil fuels, poised to usher in a green transition.
According to a report from the International Energy Agency, more than 185 government announcements have been issued across 60 countries to accelerate renewable and nuclear energy following the blockade. The report is part of the agency’s 2026 Energy Crisis Policy Response Tracker, which documents policy initiatives as nations transition to the relative safety of domestic renewables.
The primary policy actions balance emergency consumption curbs with financial support for consumers, including public transport incentives, petrol rationing, and encouragement of energy-efficient lifestyles. All of which are temporary measures while the ultimate target remains the build-up of sustainable, renewable energy infrastructure.
Green infrastructure is scaling up
Never before has renewable energy been cheaper or easier to install at scale. And, never before has the shift to renewables been so widespread, with clean energy accounting for over 90 per cent of all new power expansion globally, according to an analysis by the International Renewable Energy Agency.
The analysis also found that this green expansion is being achieved at a lower cost than the cheapest fossil fuel alternatives. In terms of long-term costs, the Climate Council reported that solar and onshore wind consistently rank as the cheapest options for building with minimal operational costs.
The discovery that green infrastructure is more economical than maintaining reliance on fossil fuels is not necessarily new; however, with the Straits closure, green energy has finally received its golden opportunity to step out from the shadow of fossil fuels.
By 2019, the World Economic Forum reported that new solar and wind were cheaper than coal and nuclear in major global markets, and in 2021, the IREA confirmed that the global weighted average cost of electricity from onshore wind is 39 per cent cheaper than fossil fuel alternatives. Now, in 2026, amidst what the IEA director has called “the greatest global energy security challenge in history,” renewables are being spotlighted as affordable, high-quality, and sustainable energy sources to power nations.
As international conflicts, supply chain vulnerabilities, and trade disputes highlight the risks of fossil fuels, nations are seeking domestic control over power generation. In other words, it seems tensions in the Middle East have strengthened the case for renewable energy, acting as a wake-up call for nations to turn their attentions away from fossil fuels.
Renewable energy powering economic resilience
Before the closure of the Strait of Hormuz, Asia imported 80 per cent of Hormuz crude oil and nearly 90 per cent of Hormuz gas. When the influx of oil suddenly stopped, countries were quickly forced into states of emergency. Schools closed in Pakistan, Sri Lanka introduced a four-day work week, and the Philippines, which imports roughly 99 per cent of its oil, experienced unprecedented triple-digit retail fuel prices.
In response, the Association of Southeast Asian Nations, an intergovernmental organisation that links 11 member countries, is spearheading a $50 billion Asian Development Bank initiative to build a grid capable of harnessing 20 terawatts of clean energy. Japan and South Korea are accelerating investments in offshore renewables, while India is rapidly redrawing its energy partnerships and has achieved almost a third of its peak demand of 256 GW through renewable energy, according to The Observer Research Foundation Middle East.
As plans are laid for long-term renewable solutions, some countries, including Japan, Pakistan, and the Philippines, are temporarily relying on coal to fill the energy gap. Despite this, data from the Centre for Research on Energy and Clean Air does not reveal any “return to coal” in 2026, and Carbon Brief reports temporary coal use will likely result in a “small rise” at most, as the strategic end goal for these nations remains fixated on renewables.
The perspective on fossil fuel reliance is shifting, and every megawatt of wind or solar generated domestically is increasingly viewed as one less kilowatt-hour dependent on vulnerable global supply chains. Countries, such as those heavily reliant on fossil fuel imports, as in Asia’s case, are increasingly viewing clean infrastructure as synonymous with national security.
A shift in consumer behaviour
Narrowing the scope from national security concerns to consumer monetary interests, while nations scramble for renewables, so too do independent homeowners and small businesses in response to price and stability concerns. This wave of consumers prioritising sustainability is reflected by increased demand for battery energy storage systems and electric vehicles.
In Australia alone, Google Trends data showed searches for “electric vehicles” surged by 278 per cent as drivers sought relief from soaring petrol and diesel costs. Additionally, almost three times as many Australians searched for EVs on March 23 compared to February 27, the day before the US started to bomb Iran and fuel prices skyrocketed.
US behaviour is also changing
Even in the US, where the federal government has stalled investment in renewable energy to prioritise the fossil fuel sector, there is growing bipartisan support for homegrown, carbon-free electricity.
Following the effective closure of the Strait of Hormuz, US solar generation increased by 19 per cent as homeowners attempted to escape from the onslaught of soaring prices, according to the US Energy Information Administration.
This push for renewables came despite rollbacks on clean energy initiatives, including fossil fuel subsidies, corporate investment drops, and EV incentive rollbacks which have attributed to about $45 billion more spent on gasoline and diesel during the Iran War than Americans spent during the same period a year ago, according to an estimate by the Wall Street Journal based on analysis of OPIS pricing data and federal demand figures.
As governments, businesses, and households experience the fallout from the Strait of Hormuz crisis, the phase-out of fossil fuels is becoming an unstoppable force, as is the case with homeowners in the US, and globally, nations are moving toward cleaner energy solutions, regardless of whether climate action was the original goal.
