Ripple effects 100 days into the Iran energy crisis

The closure of the Strait of Hormuz during the Iran war has triggered a global energy crisis, causing Brent crude to reach USD 138/barrel and spiking natural gas prices, particularly in Asia. This disruption has led to increased food and fertiliser prices, slowed global GDP growth, and strained national budgets through increased fossil fuel subsidies. In response, 26 countries and regions have implemented clean energy measures, with Asia leading in both vulnerability to supply shocks and the acceleration of clean technology investments and deployments.

• The closure of the Strait of Hormuz has caused severe global energy price spikes, with Brent crude reaching USD 138/barrel. Natural gas prices saw the highest peaks in Asia, where the LNG Japan/Korea Marker (JKM) rose to USD 22.35 per MMBtu on March 19, a 108.4% increase from the day before the war.
• The energy crisis has disrupted agricultural supply chains, as 34% of global urea and 23% of global ammonia trade passed through the Strait of Hormuz in 2024. This contributed to the World Bank Group’s fertiliser price index rising over 12% in Q1 2026 and the UN FAO food price index reaching a three-year high in April 2026.
• Global economic growth has slowed due to the conflict; the IMF reduced its 2026 growth forecast by 0.22% to 3.1%, while the OECD expects global GDP growth to drop from 3.4% in 2025 to 2.8% in 2026.
• Asia is the most vulnerable region to the crisis, as China, India, Japan, and South Korea account for 75% of crude oil and 59% of LNG exports through the Strait of Hormuz. This has led to increased inflation, higher power prices, and significant budget deficits due to fossil fuel subsidies, such as in Malaysia where monthly petrol/diesel subsidies rose to approximately RM 5 billion.
• In response to the crisis, 26 countries and regions have released clean energy and electrification measures, with Asia enacting the most. Specific actions include the Philippines activating 250 MW of solar capacity and 450 MWh of battery storage, and Indonesia planning to replace over 2,000 diesel-powered plants (1.07 GW) with renewable energy.
• There has been a surge in clean technology imports and demand in Asia. China's EV exports to the rest of Asia reached a record USD 2.2 billion in April, while Nepal's imports of Chinese solar PV products increased more than 12-fold to USD 9.1 million in the same month.

APA

Kong, A. (2026). Ripple effects 100 days into the Iran energy crisis. Zero Carbon Analytics. https://zerocarbon-analytics.org/energy/factsheet-ripple-effects-100-days-into-the-iran-energy-crisis/

Chicago

Kong, Amy. Ripple effects 100 days into the Iran energy crisis. Zero Carbon Analytics, 2026. https://zerocarbon-analytics.org/energy/factsheet-ripple-effects-100-days-into-the-iran-energy-crisis/.

Wikipedia

{{cite report |last1=Kong |first1=Amy |title=Ripple effects 100 days into the Iran energy crisis |publisher=Zero Carbon Analytics |date=8 June 2026 |url=https://zerocarbon-analytics.org/energy/factsheet-ripple-effects-100-days-into-the-iran-energy-crisis/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kong2026ripple, author = {Kong, Amy}, title = {{Ripple effects 100 days into the Iran energy crisis}}, institution = {Zero Carbon Analytics}, year = {2026}, month = jun, url = {https://zerocarbon-analytics.org/energy/factsheet-ripple-effects-100-days-into-the-iran-energy-crisis/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }