Eco-Business

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Policy & Finance

War and climate

The closure of the Strait of Hormuz showed how quickly a regional conflict can throw global energy markets into chaos. By pushing governments toward coal and biofuels, the war could accelerate deforestation and undermine climate negotiations, with environmental consequences that will linger long after the fighting ends.

12 Sep 2026

Consumption demand, which has long powered America’s formidable economy, rests on the promise of cheap energy. But the Trump administration has conflated that with fossil fuels, confusing historic correlation with causation and, in the process, jeopardizing long-term prosperity.

The war in the Gulf has unleashed powerful market forces that the rest of the world can harness to accelerate electrification and keep the Paris climate agreement's primary objectives on track. Doing so will not only mitigate climate change, but also strengthen economic resilience worldwide.

Perhaps the most unsettling lesson from the closure of the Strait of Hormuz is the gap between what we knew and how we prepared. Countries should use whatever easing of immediate pressures occurs to strengthen resilience before the next shock arrives.