Iran war and Strait of Hormuz closure disrupt energy and climate goals

Global conflicts and climate change are deeply interconnected, mutually reinforcing, and pose a significant challenge to international stability and energy security. The ongoing Iran war and the closure of the Strait of Hormuz highlight how geopolitical instability can disrupt global energy markets, forcing nations to revert to carbon-intensive energy sources and delaying the urgent shift to a sustainable future.

Understanding the impact of global conflicts on energy markets and climate action is vital for a secure future. Fuse Energy is committed to building a world where energy is abundant and clean, reducing reliance on volatile fossil fuels. Click here to switch to Fuse Energy today and be part of the solution.

The unseen carbon footprint of conflict

Military operations and their aftermath contribute substantially to global greenhouse gas emissions, often in ways that go unmeasured. This hidden carbon footprint complicates accurate climate assessments and hinders effective climate action.

Direct emissions from military operations

Military operations are inherently carbon-intensive, consuming vast quantities of fossil fuels for vehicles, aircraft, naval vessels, and infrastructure. The sheer scale of fuel consumption, coupled with the environmental damage caused by conflict, means military activities contribute significantly to global greenhouse gas emissions. A 2026 review found that "more than 90 per cent of emissions linked to military operations and conflicts go unaccounted for" in national climate reporting. This lack of transparency makes it nearly impossible to accurately gauge the true environmental cost of war and integrate it into global climate strategies.

Environmental degradation and resource scarcity

Beyond direct emissions, conflicts devastate natural environments. Destruction of forests, wetlands, and agricultural land not only releases stored carbon but also reduces the planet's capacity to absorb future emissions. This environmental degradation exacerbates resource scarcity, particularly for water and arable land, which can in turn fuel further conflict. The impact on food security is profound, as agricultural systems are disrupted and fertiliser prices become volatile, creating a cycle of instability and environmental harm.

The carbon cost of post-war reconstruction

The environmental toll of conflict does not end when the fighting stops. Post-war reconstruction efforts often involve carbon-intensive industries and materials, adding significantly to the overall carbon footprint. Rebuilding infrastructure, housing, and industrial capacity typically relies on cement, steel, and heavy machinery, all of which are major emitters of carbon dioxide. This phase, while necessary for recovery, presents a critical challenge for nations striving to meet climate targets, as it can lock in carbon-intensive practices for decades.

Geopolitical instability and energy markets

Geopolitical conflicts create profound instability in global energy markets, leading to supply chain disruptions and price volatility. This instability often forces governments to make difficult choices that undermine climate action.

Supply chain disruptions and oil price volatility

Regional conflicts, such as the Iran war and the closure of the Strait of Hormuz, can severely disrupt global energy markets. The Strait of Hormuz, a critical chokepoint for oil shipments, has historically demonstrated its vulnerability. The International Energy Agency (IEA) described the Strait of Hormuz closure as the "largest supply disruption in the history of the global oil market". Such events trigger immediate spikes in oil prices, creating economic uncertainty and impacting everything from transport costs to manufacturing. These disruptions highlight the fragility of a global energy market heavily reliant on specific geographic regions and fossil fuel supply chains.

The forced reliance on fossil fuels

When faced with energy supply shortages or price shocks, governments often prioritise immediate energy security over long-term climate goals. This can lead to a forced reliance on readily available, albeit carbon-intensive, fossil fuels like coal. Countries may reactivate coal plants, delay their phase-out plans, or increase imports of fossil fuels, directly increasing carbon emissions. Furthermore, the push for biofuels as an alternative can accelerate deforestation, as land is cleared for energy crops, creating a double blow to climate efforts.

Hindering the clean energy transition

Geopolitical instability diverts financial resources and political attention away from the clean energy transition. Investments in renewable energy projects, which require long-term stability and predictable policy environments, can be delayed or cancelled. Supply chain disruptions also affect critical minerals essential for renewable technologies, making the transition more expensive and challenging. This cycle of conflict and fossil fuel reliance slows the deployment of clean energy systems, pushing global climate goals further out of reach.

Energy security meets climate security

The traditional view of energy security and climate security as separate, or even competing, objectives is no longer viable. These two critical areas are now inextricably linked, with disruptions in one directly impacting the other.

Why they are not the same, yet reinforce each other

As the Eco-Business article highlights1, 'Energy security and climate security are not the same thing, but they now reinforce each other.' Energy security traditionally focuses on the reliable and affordable supply of energy. Climate security, on the other hand, aims to mitigate the risks of climate change. However, reliance on volatile fossil fuel markets for energy security directly undermines climate security by increasing emissions. Conversely, accelerating the clean energy transition enhances energy security by diversifying supply and reducing dependence on geopolitically sensitive regions, thereby reinforcing climate goals.

Vulnerability to geopolitical shocks

Nations heavily dependent on imported fossil fuels are inherently vulnerable to geopolitical shocks. Conflicts in major oil and gas producing regions can lead to supply interruptions and price hikes, threatening economic stability and national security. This vulnerability creates a powerful incentive to develop resilient, diverse energy systems that are less susceptible to external pressures. A diversified energy mix, with a strong emphasis on domestic renewable sources, acts as a buffer against these shocks.

The UK's stake in global energy stability

For the UK, global energy stability is paramount. As an island nation with significant energy import needs, disruptions in international markets directly impact household bills and industrial costs. The UK's commitment to net-zero emissions means it must navigate the complexities of phasing out fossil fuels while ensuring a secure energy supply. Investing in domestic renewable energy, improving energy efficiency, and fostering international cooperation on clean energy technologies are not just environmental imperatives but strategic necessities for the UK's long-term energy security and economic resilience.

Accelerating the clean energy transition as a solution

The intertwined challenges of war and climate change demand a strategic response: an accelerated clean energy transition. This shift offers a path to greater resilience, reduced geopolitical risk, and a more stable future.

Building resilient and diverse energy systems

Accelerating the deployment of clean energy technologies, such as solar, wind, and battery storage, builds more resilient and diverse energy systems. Unlike fossil fuels, which are often concentrated in specific regions, renewable resources are widely distributed. This decentralisation reduces reliance on vulnerable supply chains and makes energy systems less susceptible to geopolitical manipulation or conflict-induced disruptions. By generating more energy closer to where it is consumed, nations can enhance their energy independence and stability.

Reducing dependence on volatile fossil fuels

A rapid transition away from fossil fuels directly addresses a root cause of geopolitical instability. By reducing global demand for oil and gas, nations can lessen the economic and political leverage of fossil fuel-producing states and diminish the strategic importance of contested energy transit routes. This shift not only mitigates climate change but also reduces the likelihood of conflicts driven by resource competition, fostering a more peaceful international environment.

International cooperation for a stable future

Addressing the dual challenges of conflict and climate change requires unprecedented international cooperation. Collaborative efforts on climate negotiation, technology transfer, and shared energy infrastructure can accelerate the clean energy transition globally. By working together, nations can build a collective resilience against geopolitical shocks and ensure that the pursuit of energy security aligns with the urgent need to respect planetary boundaries. This collaborative approach is essential for creating a stable, sustainable future for all.

Fuse Energy believes in a future with power to play with: energy so abundant it stops being a thing you think about. We refuse to settle for a world where energy insecurity fuels conflict and hinders climate action. By delivering abundant, clean energy to homes, Fuse contributes to a broader shift away from volatile fossil fuels, which are a key driver of geopolitical instability. Accelerating the clean energy transition is a strategic 'power play' that simultaneously enhances energy security, climate security, and geopolitical stability. Find out more about our mission to make energy abundant by clicking here. Ready to make the switch? Click here to get started today.

References

1. Eco-Business. War and climate