The recent disruption to energy flows through the Strait of Hormuz has highlighted the vulnerability of economies that depend on imported fossil fuels and strengthened the case for accelerating electrification, renewable energy deployment and energy efficiency measures.
This is according to a recent report by the Energy Transitions Commission ETC, which examined the impact of the US-Israeli conflict with Iran and the resulting disruption to one of the worlds most important energy trade routes.
According to the report, the crisis affected approximately 18,4 million barrels per day of oil flows and around 110 bcm of liquefied natural gas LNG trade, equivalent to roughly 20 of global LNG trade. The disruption pushed Brent crude prices above US100/bbl R1 652/bbl while Asian LNG benchmark prices rose from about US10-US12/MMBtu R165-R198/MMBtu before the conflict to more than US25/MMBtu R412/MMBtu.
