The Hormuz Strait crisis accelerates Gulf states' overseas investment in new energy
BlockBeats News, on June 1st, Fortune magazine reported that, due to Iran blocking the Strait of Hormuz and growing tensions in Middle Eastern energy supply, Gulf countries are accelerating their development of overseas renewable energy projects to enhance energy security and drive economic diversification.
The International Energy Agency (IEA) stated that the ongoing Iran conflict over several months has resulted in one of the largest oil supply disruptions in global market history. Facing escalating geopolitical risks, Gulf nations such as the UAE and Saudi Arabia are ramping up investments in overseas wind power, photovoltaic, and energy storage projects.
Recently, UAE renewable energy giant Masdar signed a $2.2 billion joint venture agreement with France’s TotalEnergies to integrate both sides’ onshore renewable energy operations across nine Asian countries. Meanwhile, Abu Dhabi sovereign wealth fund Mubadala has invested in US energy management platform Power Factors and UK’s Hornsea 3 offshore wind power project.
Data shows that as of this January, Masdar’s global installed renewable energy capacity had reached 65GW, a further increase from 51GW in 2025, with plans to reach 100GW by 2030.
However, the Strait of Hormuz crisis is also impacting the Gulf region’s own new energy development. Norwegian energy research firm Rystad Energy data shows that in March this year, the UAE’s solar module imports dropped from 767MW the previous month to 160MW; Saudi Arabia went from 704MW to 80MW; and Oman dropped to zero.
Meanwhile, due to supply chain disruptions and surging transportation costs, the price of shipping a 20-foot standard container from Shanghai to the Gulf and Red Sea routes has risen from a pre-war $980 to $4,131, exceeding peaks during the pandemic. Rystad expects that ongoing renewable energy projects in the Middle East could face delays of three to twelve months.
Analysts believe that if the Strait of Hormuz disruption continues into the second half of 2026, some renewable energy projects may be forced to postpone implementation until 2027, and more capital could flow into overseas markets with more stable supply chains.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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