The ongoing war in Iran and the prolonged closure of the Strait of Hormuz are shifting the focus of global energy security discussions. In the past, the intermittency of wind and solar power was commonly viewed as the primary weakness, while coal, oil, and natural gas were seen as more reliable sources of supply. Today, the inherent vulnerability of fossil fuel supply chains has become the new focus.
The strait blockade amplifies oil and gas risks.
The Strait of Hormuz typically handles about 20% of global oil and liquefied natural gas shipments. As conflicts in the Middle East escalate, prolonged disruptions to this critical waterway are putting pressure on global energy markets and significantly heightening inflation concerns.
Energy experts interviewed by CNBC said the disruption has exposed the traditional energy sector's high sensitivity to cross-border shipping, geopolitical tensions, and import dependence. Kingsmill Bond, an energy strategist at the UK-based think tank Ember, said that past criticisms of renewable energy for its "intermittency" are now increasingly being directed at fossil fuels, as their supply has become more uncertain.
He believes that, compared to the oil crises of the 1970s, countries now have more mature alternatives at their disposal, including solar power, wind energy, battery storage, and electrification technologies. These technologies can be deployed more quickly and at lower costs.
European companies emphasize local electricity
Markus Rauramo, CEO of Finnish energy company Fortum, said that reducing dependence on imported high-carbon fuels hinges on developing domestic clean electricity. He added that this is precisely the direction Europe needs to move toward.
However, he also noted that restructuring the energy mix does not mean intermittent issues have disappeared. For households and businesses still reliant on natural gas, the transition continues to pose real pressures, so policies and system infrastructure must advance in tandem.
Birgitte Ringstad Vartdal, CEO of Statkraft, Europe’s largest renewable energy producer, also stated that after the conflicts in Ukraine and Iran, the role of clean energy in energy security has become significantly more prominent.
Battery and hydropower rise
Vartdal said that in recent years, the decline in battery costs and improvements in storage duration have made batteries more prominent in managing peak load transitions during morning and evening hours. In the past, these periods often required additional conventional power sources to compensate, but now, combinations of batteries with solar and wind power can handle a greater share of electricity supply.
She also noted that Norway, with its abundant hydropower resources, is better positioned than most European countries to manage fluctuations in renewable energy. However, from a system-wide perspective, some natural gas capacity must still be maintained to address prolonged periods of low generation.
Europe turns to U.S. LNG
The article also notes that, following the Russia-Ukraine conflict, Europe has clearly shifted toward U.S. liquefied natural gas. Professor Jan Rosenow of the University of Oxford’s Energy and Climate Policy program stated that, amid ongoing tensions in the Strait of Hormuz, Europe may import more LNG in the future, with a significant portion coming from the United States.
He believes this means Europe may shift from relying on one type of external supply risk to another. If import sources become even more concentrated in a single country, geopolitical and diplomatic changes could still disrupt supply stability. In contrast, domestic renewable electricity does not face the same cross-border transportation issues.
Overall, this Middle East conflict has not only disrupted oil and gas transportation but also reshaped the definition of energy security. The traditional notion that fossil fuels are more stable while renewable energy is more volatile is now facing direct challenges from reality.