Clean energy stocks gain in value during Iran war

The US-Israel invasion of Iran in February 2026 has accelerated the global transition to clean energy as 23 countries announced new measures to reduce fossil fuel vulnerability. Clean energy ETFs have outperformed oil and gas ETFs in early May 2026, with renewable energy funds attracting over USD 3 billion in April 2026. Investor sentiment is shifting, with a rise in those ranking renewables top for one-year returns (14% vs 9% in 2025) and a decline in the perceived necessity of natural gas for the transition, particularly in Asia. While the cost of capital remains significantly higher in emerging markets (12.95%) compared to Europe (5.02%), geopolitical instability is prompting a reassessment of risk premiums in favor of domestic renewables.

• The US-Israel invasion of Iran on 28 February 2026 triggered a 'structural awakening' regarding the vulnerability of fossil fuel supply chains, leading 23 countries across five continents to announce clean energy and electrification measures by 1 May.
• Clean energy exchange-traded funds (ETFs) outperformed traditional oil and gas ETFs in early May 2026. Renewable energy ETFs saw over USD 3 billion in net inflows in April 2026, the highest monthly amount since January 2021.
• Norges Bank Investment Management, the world's largest single asset owner, announced on 5 May 2026 that it is on track to allocate 1% of its assets to unlisted renewable energy infrastructure by 2030. ZCA analysis indicates this represents at least USD 12.6 billion in new investment.
• Investor sentiment toward short-term renewable returns is increasing; 14% of CORE survey respondents ranked renewables top for one-year returns in March 2026, up from 9% in March 2025. However, renewables are still ranked lowest for short-term returns overall, while remaining highest for long-term (10-year) perceived returns.
• The perceived necessity of natural gas as a transition fuel from coal is declining globally, dropping from 62% in March 2025 to 54% in March 2026. This decline is most acute in Asia, where agreement fell to 48%, the lowest level since polling began.
• There is a stark regional disparity in the cost of capital for renewable energy; as of January 2026, the cost was 5.02% in Europe compared to 12.95% in emerging markets, including Asia.
• Multilateral development bank (MDB) financing for clean electricity grew at an average annual rate of 32% between 2021 and 2024, with USD 25.6 billion invested in 2024 (a 37% year-on-year increase).

APA

Kong, A. (2026). Clean energy stocks gain in value during Iran war. Zero Carbon Analytics. https://zerocarbon-analytics.org/energy/clean-energy-stocks-gain-in-value-during-iran-war/

Chicago

Kong, Amy. Clean energy stocks gain in value during Iran war. Zero Carbon Analytics, 2026. https://zerocarbon-analytics.org/energy/clean-energy-stocks-gain-in-value-during-iran-war/.

Wikipedia

{{cite report |last1=Kong |first1=Amy |title=Clean energy stocks gain in value during Iran war |publisher=Zero Carbon Analytics |date=12 May 2026 |url=https://zerocarbon-analytics.org/energy/clean-energy-stocks-gain-in-value-during-iran-war/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kong2026clean, author = {Kong, Amy}, title = {{Clean energy stocks gain in value during Iran war}}, institution = {Zero Carbon Analytics}, year = {2026}, month = may, url = {https://zerocarbon-analytics.org/energy/clean-energy-stocks-gain-in-value-during-iran-war/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }