Global Energy Crisis: 60 Nations Respond with Nearly 200 Policies Amid Iran War Disruptions

One month into the US and Israel’s war on Iran, at least 60 countries have taken emergency measures in response to the subsequent global energy crisis, according to analysis by Carbon Brief. So far, these countries have announced nearly 200 policies to save fuel, support consumers, and boost domestic energy supplies.

Carbon Brief has drawn on tracking by the International Energy Agency (IEA) and other sources to assess the global policy response, just as a temporary ceasefire is declared. Since the start of the war in late February, both sides have bombed vital energy infrastructure across the region as Iran has blocked the Strait of Hormuz—a key waterway through which around a fifth of global oil and liquefied natural gas (LNG) trade passes. This has made it impossible to export the usual volumes of fossil fuels from the region and, as a result, sent prices soaring.

Key Policy Responses Across 60 Nations

Around 30 nations, from Norway to Zambia, have cut fuel taxes to help people struggling with rising costs, making this by far the most common domestic policy response to the crisis. Some countries have stressed the need to boost domestic renewable-energy construction, while others—including Japan, Italy, and South Korea—have opted to lean more on coal, at least in the short term.

The most wide-ranging responses have been in Asia, where countries that rely heavily on fossil fuels from the Middle East have implemented driving bans, fuel rationing, and school closures in order to reduce demand.

The Iran War and Its Energy Impact

On 28 February, the US and Israel launched a surprise attack on Iran, triggering conflict across the Middle East and sending shockwaves around the world. There have been numerous assaults on energy infrastructure, including an Iranian attack on the world’s largest LNG facility in Qatar and an Israeli bombing of Iran’s gas sites.

Iran’s blockade of the Strait of Hormuz, a chokepoint in the Persian Gulf, is causing what the IEA has called the “largest supply disruption in the history of the global oil market.” A fifth of the world’s oil and LNG is normally shipped through this region, with 90% of those supplies going to destinations in Asia. Without these supplies, fuel prices have surged.

Governments Act to Mitigate Crisis

Governments around the world have taken emergency actions in response to this new energy crisis, shielding their citizens from price spikes, conserving energy where possible, and considering longer-term energy policies. Even with a two-week ceasefire announced, the energy crisis is expected to continue, given the extensive damage to infrastructure and continuing uncertainties.

Asia Faces the Most Extreme Disruptions

Carbon Brief has used tracking by the IEA, news reports, government announcements, and internal monitoring by the think tank E3G to assess the range of national responses to the energy crisis roughly one month into the Iran war. In total, Carbon Brief has identified 185 relevant policies, announcements, and campaigns from 60 national governments.

As the map below shows, these measures are concentrated in East and South Asia. These regions are facing the most extreme disruption, largely due to their reliance on oil and gas supplies from the Middle East.