As US-Iran war threatens global energy markets, will China speed up its green transition? | South China Morning Post

2026-03-06 01:17:01

Abstract generation in progress

From Venezuela to Iran, a wave of military interventions by the United States threatens to disrupt China’s oil supplies – and could accelerate Beijing’s transition away from fossil fuels, according to analysts.

“Geopolitical tensions often serve as a reminder that heavy dependence on imported fossil fuels represents a structural vulnerability,” said Shen Xinyi, a researcher at the Centre for Research on Energy and Clean Air.

The current turmoil could reinforce Beijing’s growing emphasis on linking energy security to the green transition, she added, even as China’s energy system had so far remained relatively resilient to escalating tensions in the Middle East.

“In this context, renewables and energy storage are not only climate solutions but also critical infrastructure for enhancing energy autonomy and system stability,” she said.

After the US-Israeli air strikes on Iran over the weekend, Tehran on Monday announced it had closed the Strait of Hormuz, the narrow shipping lane south of the country through which about 20 per cent of global crude and liquefied natural gas (LNG) flows.

On the same day, Qatar’s state-run energy firm halted LNG production, sending prices soaring, while Saudi Arabia shut down its largest oil refinery after it was struck by Iranian drones.

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