Iran War Triggers Global Energy Rebalance Amid Strait Disruption
War-driven disruption around Iran and the closure of the Strait of Hormuz is tightening global energy markets, sending oil and LNG prices higher and forcing countries to ration fuel and shift toward coal and renewables. Even if the strait reopens soon, analysts expect a persistent supply 'air pocket' and multi-year LNG loss, keeping prices elevated through 2026. The crisis is already prompting shifts—from increased coal use in Europe and Asia to accelerated renewables and EV adoption in Asia—and is spurring calls for a broader, all-of-the-above energy strategy in the US and elsewhere as energy security and investment choices adapt to a more volatile global landscape.
