Global energy impacts of Iran war

Following the start of the war with Iran on February 28, 2026, global energy markets and policies have undergone significant shifts. The conflict, characterized by Iranian attacks on oil tankers in the Strait of Hormuz, caused crude oil prices to increase by approximately $20 per barrel. This led to a rise in US regular gas prices from roughly $2.98 to $4.08.

In the United States, these rising costs have reshaped the 2026 election cycle. Democratic candidates have pivoted to running approximately two-thirds of campaign advertisements regarding gas prices, using the issue to target Republican incumbents on matters of affordability and Iran war powers.

On a global scale, the conflict has prompted more than 30 governments to implement policies aimed at energy efficiency or transitioning away from fossil fuels. While solar investment has grown in the United States, Europe, and India, and solar power is replacing some diesel plants in Indonesia, experts note a contradiction in global policy as some governments simultaneously support fossil fuel expansion. Despite the push for renewables, global greenhouse gas emissions have seen a slight increase, and clean energy investments declined in the first half of 2026, largely driven by declines in China.