Iran conflict should accelerate renewable transition in the Middle East
The US-Iran conflict has once again laid bare the vulnerability of global energy markets. Oil prices have touched historical highs in sustained rallies, touching highs of $120 per barrel as concerns regarding the situation grew.
Major concerns swirl around the fate of the Strait of Hormuz; an important waterway for about 20% of the world's oil and liquefied natural gas. Any disruptions on this route in the past have historically caused huge oil price spikes, demonstrating how important Middle Eastern energy exports continue to be for the global economy.
As governments throughout the Gulf and North Africa continue to grapple with what appears to be an evolving situation, one thing that the conflict has reinforced undoubtedly is the strategic consideration to reduce reliance on oil and gas for energy generation. Not only would that protect export revenues but also improve long-term energy security.
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Youshey Zakiuddin