War in Iran increases interest in renewable energy

The conflict in the Middle East has caused a sharp increase in oil prices – on Monday, March 16 this year, a barrel of Brent crude was priced at over $103. This is a blow to the global economy, but at the same time an impulse to move away from fossil fuels. Experts say that the war in Iran will contribute to increased investment in renewable energy sources.

Dependence on fossil fuels is dangerous

Simon Stiell, Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), referred to the situation in the Middle East in his speech at the Green Growth Summit 2026 in Brussels. In his view, the war in Iran is the best proof of how reliance on fossil fuels threatens national security and the sovereignty of individual countries.

Sunlight does not depend on narrow and vulnerable shipping straits, the wind blows without massive naval escorts funded by taxpayers, and renewable energy allows countries to isolate themselves from global turbulence and bypass power politics – said Stiell, reminding that renewable energy also means new jobs, lower electricity bills and cleaner air.

The head of the UNFCCC also recalled that Europe is particularly dependent on fossil fuel imports, for which EU households and businesses pay the price. The only way to limit further losses and prevent crises is to invest wisely in green energy, which supports political stability.

Fossil fuel dependency is ripping away national security and sovereignty, and replacing it with subservience and rising costs.

But renewables turn the tables. More jobs, better health, more secure and affordable energy.

More: https://t.co/xvMfMpYUZx

— Simon Stiell (@simonstiell) March 16, 2026

Changes in the approach to energy are becoming increasingly visible

Global analysts emphasize that the war in Iran reveals the strengths and weaknesses of individual economies in terms of the resilience of their energy sectors. In China, more than half of newly sold cars are electric, and in Nepal this figure is as high as 70 percent – rising oil and gasoline prices will therefore affect their citizens to a lesser extent.

In Pakistan in 2025, solar energy covered 25 percent of national demand, and wind and hydropower plants also recorded dynamic growth. According to the country’s energy minister Awais Leghari, these changes have reduced the country’s vulnerability to disruptions in global LNG supplies.

After the outbreak of the war in Ukraine, Spain and Portugal also significantly reduced their dependence on fossil fuels by investing in photovoltaics, wind turbines and energy storage. From today’s perspective, this strategy has proven far more profitable than replacing Russian gas with supplies from Qatar.

A report published in February this year by Clean Air Task Force shows that the United Arab Emirates, Saudi Arabia, Qatar, Kuwait and Bahrain have already invested more than $100 billion in the renewable energy sector in Africa, where 600 million people still lack access to electricity. Entrepreneurs from the Persian Gulf, who want to diversify their activities beyond the oil and gas sector, understand the profitability of green energy in countries with rapid urbanization and growing importance in global supply chains linked to critical minerals.

Can the war in Iran increase the prices of renewable energy systems?

Although the conflict in the Middle East is an impulse for decarbonization, its course may be temporarily hindered. Analysts cited by The New York Times suggest that, similarly to the period after Russia’s attack on Ukraine, we can expect a temporary increase in the prices of renewable energy installations resulting from increased demand.

The war in Iran poses another risk to the green transition – some countries, instead of investing in green energy, may once again turn to coal. According to Professor David Victor of the University of California, San Diego, the war has reminded everyone of the immense importance of energy security. And with that reminder come radically different responses.