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Hormuz blockade: Boon or bane for clean energy?
The article analyzes how disruptions in shipping through the Strait of Hormuz affect global energy markets, intensify fossil fuel price volatility, and simultaneously highlight both resilience and vulnerabilities in the clean energy transition. It also outlines how renewables, EVs, and mineral supply chains may respond to such shocks.
Why It Matters
The crisis tests energy security and could influence the pace of the clean energy transition, exposing both its resilience and its dependence on concentrated supply chains and critical minerals.
Timeline
6 Events
Hormuz disruption highlights LNG market vulnerability
May 6, 2026
The disruption underscores that roughly 20% of global LNG has no viable alternative route out of the region, illustrating the vulnerability of LNG supply chains to Hormuz-related disruptions.
Iranian attacks disrupt tanker traffic and damage Ras Laffan LNG complex
May 6, 2026
Iranian attacks disrupted tanker traffic and damaged Qatar’s Ras Laffan LNG complex, reducing around 17% of LNG capacity for up to five years.
Asian LNG prices (JKM) spike above $25/MMBtu
April 1, 2026
Asian LNG spot prices (JKM) rose sharply to over $25 per MMBtu, with potential rises to $30/MMBtu or higher if the crisis extends.
Brent crude above $100–110/bbl amid Gulf tensions
April 1, 2026
As tensions in the Gulf and disruption of Hormuz shipping intensified, Brent crude surged past $100–110 per barrel, with projections suggesting it could rise further to $130–170 per barrel in a prolonged disruption.
Global electric vehicle sales reach 20.7 million in 2025
December 31, 2025
Electric vehicle sales climbed to 20.7 million units in 2025, growing about 20% year on year and representing roughly one in four new cars sold globally.
Global renewable energy capacity reaches 5,149 GW by end-2025
December 31, 2025
Renewable energy capacity globally reached 5,149 gigawatts by the end of 2025, accounting for nearly half of the world’s total electricity generation capacity.