Iran war: How green energy shields countries from oil shocks in Oil & Companies News 20/03/2026 The Iran war has disrupted oil and gas trade. As countries like the US double down on fossil fuels, experts say the conflict shows how speeding up homegrown renewables is the only way to avoid future energy crises. Countries that generate more of their power from wind, solar and other renewable sources are better protected from global energy shocks, experts say, as the escalating conflict in the Middle East rattles global markets. The war has widened since the US and Israel launched strikes on Iran more than 10 days ago. Critical infrastructure in the region has come under attack and the risk of Iranian strikes has essentially shut down the Strait of Hormuz,the crucial waterway used to transport 20% of the world’s oil and gas. The disruption means fuel may struggle to reach the countries that depend on it to generate electricity, heat homes, power industry and run transport. The resulting supply squeeze is pushing prices higher around the world and could intensify cost-of-living pressures. “Energy is the lifeblood of our societies and our industries,” said Antony Froggatt, aviation, shipping and energy expert at Brussels-based NGO Transport & Environment. “And we’re still highly dependent on fossil fuels.” The world still gets about 80% of its primary energy from fossil fuels, the main source of greenhouse gas emissions driving climate change. In his second term, US President Donald Trump has also doubled down on fossil fuels, scrapping Biden-era green energy and climate regulations aimed at cutting emissions. That dependence makes economies and societies vulnerable to geopolitical shocks, said Rana Adib, executive secretary of the Renewable Energy Policy Network for the 21st Century (REN21). Countries with a higher share of “homegrown” renewables in their energy mix are “less vulnerable to these shocks,” she argued. Green energy technologies like wind turbines, solar panels and batteries — and the rare earths required in their manufacture — have global supply chains that can also be affected by geopolitical tensions and trade disruptions. But the energy renewables produce typically comes from within national borders. “Once you bring the technology into the countries, the fuel you’re using is the sun, is the wind, is the heat that is local,” Adib told DW. “And this is a reason why renewable energy as a solution for energy production is much more resilient to those global shocks.” Uruguay bets on wind and hydro After the financial crisis in 2008, unease about a reliance on oil and gas imports was what drove Uruguay to go all in on renewables. Two decades ago, the small South American country with a population of 3.5 million embarked on a plan to phase fossil fuels out of its power grid by rapidly expanding wind farms. Today, more than 90% of the country’s electricity comes from renewables — mainly wind, solar, hydropower and biofuels. That figure has reached 98% in some particularly wet and windy years. “It shows us that a 100% renewable electricity grid is fully possible,” said Adib, adding that Uruguay has managed to do so without the massive amounts of storage required for when the sun isn’t shining and wind isn’t blowing. Adib said the shift to green power helped limit Uruguay’s exposure to past energy price surges. “During the energy crisis linked to the war in in Ukraine, Uruguay energy prices remained stable,” Adib said. “This is extrem