IEA Middle East war reshaping global energy strategies investments worldwide

The International Energy Agency said, today Thursday, that the Middle East war is pushing countries to reconsider their energy strategies by adopting new supply routes and relying on their own resources, facing the second crisis of this kind in five years.

The Agency's Executive Director Fatih Birol said the world is going through the most dangerous energy security crisis in history, indicating it will reshape investment strategies globally similar to the major transformations the sector experienced after the two oil shocks of the 1970s, noting intensified efforts by producing and consuming countries to diversify trade routes and energy sources through building new pipelines and increasing reliance on national resources.

The Agency projected global energy investments to reach $3.4 trillion in 2026, with around $2.2 trillion allocated for clean, renewable, and nuclear energy and electricity networks, while around $1.2 trillion is expected to be invested in oil, natural gas, and coal, though oil investments are expected to decline for the third consecutive year to below $500 billion despite rising crude prices.

Oil-importing countries are turning toward energy sources available on their own territories, led by renewables, nuclear, and coal, with the Agency estimating renewable energy investments reaching around $665 billion including $365 billion for solar energy alone, while nuclear energy investments are expected to surpass $80 billion annually, and coal investments are projected to reach $180 billion, the highest level since 2012.