Six months after US-Israeli strikes disrupted energy infrastructure in the Middle East and turned the Strait of Hormuz into a major flashpoint, the Iran war is reshaping the global energy landscape, according to a Bloomberg report.
The conflict, which began on Feb. 28, has sharply increased fossil-fuel prices and raised costs for energy-importing nations, while encouraging governments, companies and consumers to accelerate their shift towards renewable energy.
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Global fossil-fuel importers have incurred more than $330 billion in additional costs since the start of the war, according to data from the Centre for Research on Energy and Clean Air (CREA), a Helsinki-based nonprofit. The figure is roughly equivalent to Finland's 2025 GDP.
Countries that had already invested heavily in clean energy have been better positioned to absorb the shock. China, for instance, avoided nearly $8 billion in fossil-fuel imports between March and July because of renewable-energy capacity added since 2020, CREA estimated.
China Emerges As Clean-Tech Winner
China has emerged as one of the biggest beneficiaries of the energy realignment. Its dominance in solar equipment, batteries and electric vehicles has put its manufacturers in a strong position as higher oil and gas prices encourage countries to look for alternatives.
According to BloombergNEF, China recorded five consecutive months of record clean-tech exports in dollar terms after the conflict began. In July, Chinese automakers exported more than 500,000 electric vehicles and plug-in hybrids, about 150% higher than a year earlier.
Oil and gas producers in North and South America have also benefited, as buyers sought alternatives to Gulf supplies. However, analysts expect some of these gains to fade if a ceasefire reduces wartime supply premiums.
Gulf States Face Heavy Losses
The Gulf region has borne some of the biggest costs. Drone strikes and explosions damaged major energy facilities, including Saudi Arabia's largest oil refinery and a key LNG export terminal in Qatar.
Initial energy-export losses across the Gulf averaged nearly $2 billion a day in March, according to an estimate from Rice University. Rystad Energy separately estimated that as much as $58 billion worth of energy infrastructure had been damaged.
The conflict has also increased borrowing costs in the region, potentially slowing clean-energy investments, BloombergNEF analysts said.
Energy-importing economies such as Japan and South Korea have meanwhile faced higher fuel costs, while several African nations have struggled with the wider economic fallout.
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India Sees Faster EV Adoption
Developing economies have faced a disproportionate burden. CREA estimates poorer nations spent an additional 1% of GDP absorbing the energy-price shock, more than twice the impact on wealthier countries.
The disruption has nevertheless accelerated clean-energy adoption. Africa imported 37% more solar equipment from China in the first half of 2026 than a year earlier, BloombergNEF data showed.
A similar trend is visible in Asia. In India, monthly passenger EV sales reached around 30,000 units in June and July, compared with fewer than 20,000 a year earlier, according to BloombergNEF.
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