Energy Security

At the outset of 2026, the global natural gas market underwent a profound structural shift that eroded much of the stability built over years of rebalancing in the aftermath of the 2022 European energy crisis. Markets had been advancing towards a phase of relative supply abundance, underpinned by expanding liquefaction capacity in the United States (US) and large-scale Qatari projects. This trajectory was abruptly reversed on Feb. 28, 2026, when Operation Epic Fury triggered the most severe energy shock to confront the international system in decades. The US-Israel-Iran War and the closure of the Strait of Hormuz, removed nearly one-fifth of global liquefied natural gas supply from circulation within days.   This paper analyses the structural transformations in the global natural gas market induced by the crisis, tracing supply and demand dynamics before and after the outbreak of the conflict. It further evaluates the implications for key actors within the international energy system, including countries most exposed to global gas market volatility, such as Egypt and Jordan.

President Donald Trump announced that the United States will impose a naval blockade on the Strait of Hormuz after weekend talks to end the Iran war collapsed without a settlement. The Islamabad negotiations, which were intended to turn a tenuous ceasefire into a durable peace and reopen Hormuz to safe navigation, broke down over unresolved disputes on nuclear enrichment, sanctions relief, and control of maritime transit. In response, Trump issued an executive order directing the US Navy to interdict any vessel attempting to transit the strait, with particular focus on neutral and commercial ships that have paid Iranian transit tolls, which the White House now characterises as an illegal extortion regime rather than a lawful fee regime.   Trump’s declaration instantly elevates the conflict from a regional shooting war to a global maritime and energy crisis centred on the world’s most critical oil chokepoint, a waterway just twenty‑one nautical miles across at its narrowest. By pledging to enforce a blockade without United Nations Security Council authorisation, the president has pushed the United States into a legally and operationally contested grey zone, framing the move as necessary to dismantle the Islamic Revolutionary Guard Corps’ grip over the strait and sever a key stream of cryptocurrency and foreign-exchange revenue to Tehran. The administration’s strategy now hinges on whether US naval power, layered secondary sanctions, and sustained diplomatic pressure can actually sustain a prolonged blockade in the face of Iranian asymmetric deterrence. The following analysis, therefore, centers on Trump’s blockade order itself: its operational viability, Iran’s capacity to erode or break it through asymmetric tactics, and the resulting shockwaves for global energy markets, commercial shipping patterns, and regional economic stability.

The United States and Israel launched Operation Epic Fury in late February 2026, targeting Iran’s nuclear and missile infrastructure and seeking to remove its political leadership. Although the operation achieved its initial tactical objectives with high precision, it provoked an asymmetric retaliatory response from the remaining Iranian forces. This response took the form of a comprehensive blockade of the Strait of Hormuz, the world’s most critical maritime artery for energy transport, triggering a severe global economic shock. Such disruption could propel the international system towards reducing its reliance on fossil fuels and accelerating the adoption of alternative domestic energy solutions, most notably nuclear power.   At the same time, global electricity demand is rising sharply, driven by the rapid expansion of advanced artificial intelligence infrastructure and high-performance computing facilities. This sudden disruption of fuel supplies places policymakers in major industrial economies under immediate economic and security pressures, while simultaneously exposing the profound consequences of closing the Strait. In this context, the present analysis examines the repercussions of the Strait of Hormuz's closure on global supply chains. It then develops a historical comparison with the oil price shocks of the 1970s, illustrating how those crises redirected states towards nuclear technology. The study concludes by analysing emerging regulatory and financial measures, as well as new geopolitical alignments, that are accelerating the global drive to construct nuclear reactors in 2026.

The U.S.-Israel and Iran War has affected the interests of many countries. In the last few days, China emerged as a significant player in these events. Beijing called for an immediate halt to the attacks by both sides and the protection of vessels passing through the Strait of Hormuz, culminating with the Chinese Foreign Minister Wang Yi pledging to send a special envoy to the Middle East for mediation.   Beijing has interconnected interests in the Middle East that are significantly affected by the war and will most likely reshape its strategic opportunities in the region, particularly in terms of energy security, trade routes, and diplomatic relations with key regional players. Beijing’s pragmatic foreign policy approach toward the region relies on protecting its economic interests and maintaining a strategic balance. So, the war could provide an opportunity for China to navigate new opportunities in the region and, consequently, expand its influence, particularly by strengthening ties with other oil-producing nations and increasing its investments in reconstruction efforts.   Likewise, China’s strategic partnership with Iran mainly revolves around oil supply and large-scale investments. The consequences of the war raise questions about the future of this relationship and the possibility that China may reshape its foreign policy toward Tehran if it faces a potential decline in Iran’s ability to sustain such interests as a result of the strain on its power after the war.

Since 2023, the uranium enrichment market has undergone its most profound structural transformation since the advent of the civilian nuclear era. After three decades characterised by persistent oversupply and the integration of Russian inventories with Western reactor fleets, the sector, valued at approximately $15.5 billion in 2025, now confronts a fundamentally altered geopolitical landscape. stems primarily from the fact that nearly 95% of global enrichment capacity is controlled by just four entities, placing Western supply chains under complex logistical and political pressures.     Central to this transformation is the evolution of what is known as the Separative Work Unit (SWU) from a readily available commodity into a strategic bottleneck capable of redrawing global energy maps. The market has shifted rapidly from a buyer-dominated structure to one characterised by seller leverage, amid an intensifying race to secure fuel for both conventional reactors and small modular reactors (SMRs), which require advanced uranium grades for which Western markets lack adequate commercial infrastructure.     Accordingly, this analysis explores the contours of the new enrichment landscape, examining the principal actors and evolving pricing dynamics, while projecting the profound implications of this transformation for global energy security.

On July 28, 2025, during a joint press conference in Scotland with British Prime Minister Keir Starmer, U.S. President Donald Trump issued an unexpected ultimatum to Russia. He declared that the Kremlin had no more than 10 to 12 days (until approximately Aug. 8, 2025) to make tangible progress toward ending the war in Ukraine. Should Moscow fail to comply, Trump warned that President Vladimir Putin would face a sweeping package of economic sanctions and severe trade restrictions. This escalation came on the heels of prolonged diplomatic stagnation and Trump’s increasingly vocal frustration with Russia’s continued military operations.   Subsequently, on July 31, 2025, former Russian President and current Deputy Chairman of the Russian Security Council Dmitry Medvedev responded with a pointed and ominous message via his Telegram channel. In his remarks, he invoked the “Dead Hand”—Russia’s semi-automated nuclear retaliation system designed to launch a retaliatory strike even in the event of a complete decapitation of the nation’s leadership.   In response, President Trump ordered the deployment of two U.S. nuclear submarines to strategic positions, framing the move as a necessary precaution in the face of what he described as “extraordinarily dangerous” nuclear threats. Notably, he refrained from specifying whether the submarines were nuclear-powered only or also nuclear-armed—introducing deliberate strategic ambiguity and reinforcing the doctrine of pre-emptive deterrence through calibrated uncertainty.   What renders this sequence of events particularly significant is that the confrontation did not remain confined to the U.S. and Russia. Its repercussions quickly extended to India, which was thrust into the geopolitical crossfire. On July 31, the Trump administration announced the imposition of a 25% tariff on all Indian exports to the United States, accompanied by threats of further penalties targeting Indian firms that continue to purchase Russian crude oil or engage in defence cooperation with Moscow. The rationale behind this punitive action lies in New Delhi’s deepening energy relationship with Russia.   Although the Indian government has not officially announced any suspension of contracts with Russian suppliers, discreet directives were reportedly issued to state-owned refiners instructing them to explore alternative sources in the global spot market. This pivot has begun to materialize reflecting New Delhi’s attempt to maintain equilibrium between preserving its strategic autonomy and mitigating mounting U.S. pressure.   Yet the broader implications of this crisis extend well beyond geopolitical brinkmanship. What is unfolding is a systemic shock to the global order—one that is reverberating through energy markets, food security systems, arms trade corridors, and supply chains. The consequences will not be distributed evenly: while some Middle Eastern states stand to benefit from surging demand and price shifts, others may face acute vulnerabilities due to trade disruptions, inflationary pressures, or capital flight.

The Strait of Hormuz – a narrow, indispensable artery through which nearly a fifth of the world’s oil and a third of its liquefied natural gas (LNG) flows– stands on a cliff. As geopolitical tensions intensify across the Middle East, fuelled by escalating Iran-Israel tensions and the shadow of direct United States (U.S.) involvement, the once-unthinkable threat of its closure looms larger than ever with Iran’s threat to close or block the Strait. In spite of the catastrophic global implications of such an act, the volatile depths of this potential crisis will be explored, unravelling the motives that could push Iran to choke this global lifeline, exposing the monumental security and geopolitical fallout, and revealing the catastrophic economic shockwave that would consume nations far beyond the region.