Iran War and Hormuz Disruptions Raise Energy Prices and Speed Some Countries' Shift to Solar and Electric Vehicles

-Israeli war with Iran, a new round of bombing has begun in the Middle East, Npr reported. The effective closure of the Strait of Hormuz cut off more than a fifth of global liquified natural gas supplies. European and Asian natural gas prices are up more than 50 percent from when the war began.

Asian natural gas prices shot up over 100 percent from pre-war levels at their peak in March. Oil prices climbed on Wednesday after President Trump said the ceasefire was over. Countries across Asia and Africa are speeding up adoption of solar, batteries and electric vehicles to decrease dependence on imported natural gas and oil.

In March, Chinese exports of solar panels were up more than 80 percent compared to the previous year. China exported more than 2 million electric passenger vehicles between January and May, with nearly half of those exports occurring in April and May.

Last year global electric vehicle use avoided consumption of around 1.7 million barrels of oil per day, more than Nigeria's daily crude oil production.

The International Energy Agency downgraded its forecast for global oil demand this year to a decline due to the disruptions. Forty-five percent of global oil is used for road transportation. The Philippines imported more than $400 million in solar panels from February to May, a 139 percent increase from a year ago.

Pakistan's investments in solar and batteries have reduced its oil and natural gas imports, saving billions of dollars. In 2025 Standard Bank's financing for renewable energy power projects outpaced non-renewable projects by a ratio of eight to one. New EV sales have slumped in the U.S.