Global energy security faces disruption from geopolitical conflicts

Global energy markets have faced significant volatility due to geopolitical conflicts. The Russian invasion of Ukraine initially caused an energy crisis in the EU, prompting shifts in fuel sourcing. While markets stabilized by early 2026, subsequent military actions involving the US, Israel, and Iran disrupted the Strait of Hormuz, a critical chokepoint for global oil and gas. The International Energy Agency estimated cumulative supply losses of 1.3 billion barrels of oil due to these disruptions, alongside price surges caused by attacks on infrastructure in Qatar.

In Ukraine, the war has necessitated a shift toward decentralized energy to mitigate the vulnerability of centralized power grids. Despite strategic ties between Beijing and Moscow, Chinese-made clean energy technologies, such as solar panels and batteries, have become vital to Ukraine’s resilience. Following significant damage to its generation capacity from Russian attacks, Ukraine has seen a resurgence in solar power deployment, with substantial installations recorded in 2024 and 2025.

Additionally, nuclear energy is seeing a renewed global interest as a stable, low-emissions power source. The International Atomic Energy Agency estimated that global nuclear capacity could potentially double by 2050, though the long lead times for new plants mean they cannot provide an immediate solution to current crises.