Global Fallout from Fossil Fuel Dependency Amid Iran Conflict

The ongoing conflict in Iran has triggered significant disruptions in global energy supplies, leading to soaring fuel prices and widespread economic repercussions. Simon Stiell, the UNFCCC Executive Secretary, highlighted the global ramifications during the EU Green Growth Summit on March 16, 2026, stating, “Countries are reeling,” as the volatility in gas and oil prices affects various sectors worldwide. The conflict has particularly intensified following Iran's attacks on commercial vessels in the Strait of Hormuz, a critical passage for approximately one-fifth of the world's oil supply.

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In response to escalating fuel costs, several countries have implemented emergency measures. Bangladesh has closed its universities early and advanced the Eid al-Fitr holidays to conserve energy. Pakistan has gone further, shutting down schools for two weeks and transitioning to a four-day work week for government employees, with many moving to remote work. The Philippines has also reduced public working hours, while Thailand has issued specific guidelines for government employees to minimize energy consumption. Vietnam, heavily reliant on Middle Eastern energy imports, has encouraged businesses to allow remote work to mitigate the impact of rising fuel prices.

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The conflict has severely disrupted global travel, with rising airfare costs and reduced flight schedules due to airspace closures. Australian airline Qantas has altered its Perth to London route, necessitating a refueling stop in Singapore, which adds significant travel time. As a result, ticket prices are expected to continue rising.

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Food security is also at risk, particularly in Egypt, where the government has capped bread prices amid fears of inflation driven by high fuel costs. The price of wheat has surged dramatically, from approximately 2,000 Egyptian pounds (€33) per tonne to 16,000 pounds (€266). This situation is compounded by the reliance of nitrogen-based fertilizers on natural gas, further exposing food production to fossil fuel price shocks. In India, restaurants have had to adapt their menus or temporarily close due to a shortage of cooking gas.

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Stiell emphasized the vulnerabilities associated with heavy reliance on fossil fuels, stating, “Fossil fuel dependency means economies, household budgets, and business bottom lines at the mercy of geopolitical shocks and price volatility.” He warned that Europe’s dependence on fossil fuel imports could lead to ongoing crises, with households and industries facing escalating costs. The reliance on taxpayer-funded fossil fuel subsidies exacerbates this exposure, making economies more susceptible to external shocks.

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Stiell concluded with a call for climate cooperation, asserting, “Climate cooperation is a cure for the chaos of this moment,” and advocating for a transition to renewable energy sources as a means to stabilize economies and mitigate the impacts of geopolitical conflicts.

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• “Fossil fuel dependency means economies, household budgets, and business bottom lines at the mercy of geopolitical shocks and price volatility in a chaotic world,” — Simon Stiell, UNFCCC Executive Secretary

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• “Climate cooperation is a cure for the chaos of this moment,” — Simon Stiell, UNFCCC Executive Secretary

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This situation underscores the urgent need for nations to reassess their energy policies and consider sustainable alternatives to reduce vulnerability to global conflicts.

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