RIYADH: RIYADH: Global energy investment is projected to rise 5 percent to a record $3.4 trillion in 2026 despite the ongoing conflict in the Middle East, with governments and companies accelerating efforts to diversify supply routes and strengthen energy security, according to an analysis.
The International Energy Agency said around $2.2 trillion is expected to flow into renewables, nuclear power, grids, storage, low-emissions fuels, efficiency and electrification this year, compared with approximately $1.2 trillion earmarked for oil, natural gas and coal.
The conflict has damaged energy infrastructure, disrupted trade routes and heightened concerns over the Strait of Hormuz, prompting both producers and consumers to reassess long-term investment strategies, the IEA said in its World Energy Investment 2026 report.
The ongoing uncertainties surrounding the Strait of Hormuz, a narrow channel along the Iranian coast, have disrupted the passage of oil and liquefied natural gas shipments since the US and Israel began airstrikes on Iran on Feb. 28.
“We are in the midst of the largest energy security crisis the world has ever faced – and I believe this will reshape investment strategies globally, with parallels to the major changes the energy world witnessed after the oil shocks of the 1970s,” said Fatih Birol, executive director of the IEA.
