The ongoing conflict in the Middle East, which has disrupted oil and gas flows through critical routes including the Strait of Hormuz, is accelerating calls for countries to fast-track the global transition away from fossil fuel dependence.
A new advisory by the International Renewable Energy Agency (IRENA) warns that sustained attacks on energy infrastructure and the selective closure of key shipping corridors have destabilised global oil and gas markets, triggering sharp and unpredictable price spikes.
The effects, IRENA notes, are already cascading beyond energy markets into transport systems, food supply chains, and broader economic activity, amplifying inflation and deepening risks for vulnerable economies.
Against this backdrop, IRENA argues that the crisis should be treated as a turning point for global energy policy, reinforcing the urgency of reducing dependence on imported fossil fuels and accelerating investment in renewable energy systems.
IRENA frames the current Middle East crisis as a clear demonstration of how fossil fuel dependency amplifies global instability, noting that countries with higher shares of renewables have been less exposed to price shocks, while those heavily reliant on imported gas and oil have experienced sharper economic stress.
The agency argues that the growing competitiveness of renewables, combined with falling storage costs, presents a practical pathway to strengthen energy security while insulating economies from geopolitical shocks.
Price volatility in oil and gas markets has quickly translated into higher transport costs, rising food prices, and increased pressure on electricity systems that remain dependent on gas-fired generation. According to the advisory, these shocks are disproportionately affecting developing economies with limited fiscal space to absorb sudden increases in import costs.
The agency warns that the current crisis is symptomatic of a broader vulnerability in fossil-fuel-based energy systems, where geopolitical instability can rapidly translate into global economic disruption.
IRENA’s advisory argues that the renewable energy transition is no longer only a climate objective but a core national security and economic stability strategy.
The agency notes that in many regions, renewable-plus-storage systems are already cost-competitive with fossil fuel generation, making them not only cleaner but economically more stable in the face of fuel price shocks.
The advisory sets out a series of urgent policy measures that governments are encouraged to adopt in response to the crisis, starting with short-term interventions designed to reduce exposure to fuel volatility.
In the immediate term, IRENA recommends rapid deployment of distributed renewable energy systems to support essential services such as healthcare, agriculture, sanitation, and food supply chains. It also calls for accelerated rollout of solar photovoltaic (PV) and battery hybrid mini-grids in off-grid and weak-grid regions to reduce reliance on diesel imports.
Looking beyond immediate crisis response, IRENA calls for governments to fast-track renewable energy and grid infrastructure projects and ensure they remain funded despite inflationary pressures and supply chain constraints.
In its longer-term recommendations, IRENA urges countries to embed renewable energy and electrification into national development and industrial strategies, rather than treating them as parallel policy tracks.
Importantly, it recommends linking fossil fuel subsidies to measurable progress in renewable energy deployment, a step aimed at accelerating structural change in energy systems.
