How the Iran war is changing the way countries think about renewables
By Sam Meredith
Published on March 25, 2026.
The fallout from the Iran war is likely to accelerate the shift away from fossil fuels and make countries think differently about the role renewables can play in bolstering energy security, according to analysts. The Middle East crisis has disrupted oil exports through the Strait of Hormuz, which carries about a fifth of the world's oil and liquified natural gas and is a key choke point for fertilizer trade. The International Energy Agency (IAEA) CEO Fatih Birol expects an acceleration in investment towards renewable energy sources due to their ability to reduce emissions and provide a homegrown domestic energy source. However, fossil fuels, like coal, oil and gas, continue to dominate the global energy mix, meeting around 80% of worldwide demand in 2023. The IEA also noted that renewable power has become more competitive in many countries due to the impact of high fossil prices on switching, making already cheap electrotech even more competitive. Some analysts suggest that the shift towards renewable sources could be a temporary setback in the transition, while others warn that the Iran crisis could delay the transition towards renewable technologies.
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