Governments worldwide are reassessing their energy strategies following a major supply shock triggered by Iran’s closure of the Strait of Hormuz after attacks by the United States and Israel on February 28.
The disruption, which has blocked roughly 20% of global oil and liquefied natural gas flows, has driven crude prices above $100 per barrel and sparked fears of prolonged instability in energy markets.
Policymakers across Europe, Asia and beyond are now exploring long-term solutions, including expanding nuclear power, accelerating renewable energy adoption and diversifying fuel import sources.
Former U.S. energy official Geoffrey Pyatt said the crisis has exposed the risks of relying heavily on Gulf energy supplies, warning that energy security concerns are now more urgent than ever.
In Europe, leaders have unveiled new financial guarantees to support nuclear energy investment, reversing decades of policy that saw reactors phased out over safety concerns.
Meanwhile, China has called for faster expansion of renewables, increased emergency reserves and broader sourcing of imports, while also cutting refinery output to manage domestic supply.
Other major importers, including Japan, Taiwan and several South Asian nations, are considering restarting nuclear facilities and shifting to spot purchases of liquefied natural gas to reduce dependence on Middle Eastern supplies.
In the short term, governments have coordinated large-scale releases of strategic fuel reserves and urged consumers to conserve energy to cushion the impact of supply disruptions.
The crisis marks the third major global energy shock of the decade, following the COVID-19 pandemic and Russia’s invasion of Ukraine, both of which reshaped global energy demand and supply chains.
Analysts say the latest disruption could accelerate a structural shift away from fossil fuels, as nations seek more secure, diversified and sustainable energy systems in an increasingly volatile geopolitical environment.