Global Energy Market Changes Following Middle East Conflict

Apr 26, 2026, 11:00

Introduction

The conflict involving the United States, Israel, and Iran has disrupted traditional oil and gas supply chains. This situation has caused a strategic shift toward production in North and South America and has sped up the global move toward renewable energy technologies.

Main Body

Iran's blockade of the Strait of Hormuz, following military actions by the US and Israel, has stopped the daily flow of 10 million barrels of Gulf oil. As a result, US crude oil exports have reached a record 5.2 million barrels per day, and jet fuel exports to Europe have hit an all-time high. Experts from Rystad Energy emphasized that repairing damaged infrastructure in the Middle East could cost between $34 billion and $58 billion and may take several years. Because of this shortage, the Americas have become the main sources of oil growth. Production in Brazil, Guyana, Suriname, and Argentina is expected to increase by 2.5 million barrels per day by 2030. Furthermore, US military intervention in Venezuela has led to an increase in Venezuelan exports, which now benefit US refineries. At the same time, China has strengthened its position as a leader in green energy. By controlling the supply chains for solar and wind technology, China now holds 60% to 85% of the renewables market, which reduces its dependence on expensive fossil fuels. However, the World Resources Institute (WRI) criticized the systemic risks caused by this crisis, particularly regarding food security. The lack of natural gas from the Gulf has increased the price of fertilizers, which is expected to lower crop yields. These problems are most severe in Africa, where countries have much lower fuel reserves than the global average. The WRI asserted that rising inflation and weaker currencies could lead to further instability in the region.

Conclusion

The current crisis has forced a change in global energy strategies. While some nations are turning to American oil and gas, others are accelerating their use of renewable energy to ensure their national security and economic stability.

Vocabulary Learning

assert (v.)
to state clearly and firmly that something is true斷言；堅稱
Example:The report asserted that the new policy would significantly reduce carbon emissions.
disrupt (v.)
to interrupt an event, activity, or process by causing a disturbance中斷；擾亂
Example:The sudden strike disrupted the city's public transport system for several hours.
infrastructure (n.)
the basic physical and organizational structures and facilities needed for the operation of a society基礎建設；基礎設施
Example:The government is investing billions to modernize the country's aging infrastructure.
intervention (n.)
action taken to intentionally become involved in a difficult situation to improve it干預；介入
Example:Many economists believe that government intervention is necessary to stabilize the market.
systemic (adj.)
relating to a whole system as opposed to a particular part系統性的；整體的
Example:The financial crisis revealed systemic weaknesses in the international banking network.

Sentence Learning

Production in Brazil, Guyana, Suriname, and Argentina is expected to increase by 2.5 million barrels per day by 2030.
Passive Voice: This structure uses "is expected" to report a future prediction formally without identifying the specific person making the prediction.被動語態：此結構使用 "is expected" 以正式方式報導未來預測，而無需指明做出預測的具體人士。
Furthermore, US military intervention in Venezuela has led to an increase in Venezuelan exports, which now benefit US refineries.
Relative Clause: The clause starting with "which" adds non-essential, extra information about the "increase in Venezuelan exports."關係子句：以 "which" 開頭的子句為「委內瑞拉出口增加」提供了非必要且額外的補充資訊。
These problems are most severe in Africa, where countries have much lower fuel reserves than the global average.
Relative Clause of Place: The word "where" introduces a relative clause that provides more context about the specific location (Africa).表示地點的關係子句：單詞 "where" 引導一個關係子句，為特定地點（非洲）提供更多背景資訊。
While some nations are turning to American oil and gas, others are accelerating their use of renewable energy to ensure their national security and economic stability.
Contrastive Conjunction: The word "While" is used at the beginning of the sentence to show a direct contrast between two different national strategies.對比連接詞：句首使用 "While" 一詞，用以顯示兩種不同國家戰略之間的直接對比。
The WRI asserted that rising inflation and weaker currencies could lead to further instability in the region.
Noun Clause: The word "that" introduces a noun clause acting as the object of the verb "asserted," used to report a formal statement or claim.名詞子句：單詞 "that" 引導一個名詞子句，作為動詞 "asserted" 的受詞，用於報導正式陳述或主張。