Operation Epic Fury has thus far achieved none of Donald Trump’s war aims, but it may well accelerate the global transition towards the clean energy he loves to hate. Last week brought the latest exchange of verbal blows in the standoff over the strait of Hormuz. Iran was “choking like a stuffed pig” on the oil it was unable to export because of the US blockade, Trump claimed. From Tehran, the supreme leader shot back that foreigners who “maliciously covet” the waterway “have no place there except at the bottom…
Tag: Oil
The great energy pivot: US oil and Chinese solar are the winners in Trump’s war on Iran
In the open seas, an armada of empty tankers has quietly turned west. A record number of super-sized vessels are now heading to the US, where oil drillers and refineries are preparing to profit from Donald Trump’s war in the Middle East. Almost 30 of these vessels, each able to hold 2m barrels of oil, are contracted to load US crude, destined for a global market facing the biggest supply crisis in history. It is just over five years since the shale revolution made the US a net energy exporter…
A day in the life of Asia’s fuel crisis
4.30am Kaipara, New ZealandJames Brady, farmer We’ve got a small dairy farm, north of Auckland. We milk 200 cows and have a small amount of beef cattle and young stock. We start about 4.30am in the morning – checking cows, feeding, milking and then we do it again in the afternoon. Most of the day is spent tending to stock, moving animals, and we’re busy renewing pastures at the moment. Diesel is our main fuel – we run two tractors and machinery. We have quad bikes that run on petrol.…
China’s ‘teapot’ oil refineries keep economy brewing – but surging crude prices leave them strained
The towns that are the bulwark of China’s energy security can, at a moment of global crisis, appear deceptively quiet. Trucks carrying oil trundle along wide-open highways that have little traffic, while a few boarded-up shops in crumbling low-rise buildings hint at a long-forgotten local buzz. A ramshackle noodle shop serving hand-pulled ribbons of dough was empty at lunchtime, save for a few construction workers and a teacher watching videos on Douyin, the social media platform, with his meal. But its boss wasn’t worried about low footfall. Peak time was…
Malaysian vessels permitted to travel through strait of Hormuz, country’s PM says after Iran talks
Malaysia’s prime minister Anwar Ibrahim said on Thursday he had spoken to the leaders of Iran, Egypt, Turkey and other regional countries and that Malaysian vessels were now being allowed to pass through the strait of Hormuz. In a televised address, Anwar thanked Iran’s president, Masoud Pezeshkian, for allowing the passage of Malaysian ships. “We are now in the process of releasing the Malaysian oil tankers and the workers involved so that they may continue their journey home,” he said. Malaysia, despite being an oil-producing nation, is highly dependent on…
The Guardian view on China and Iran: the war poses bigger questions for Beijing than where to get its oil | Editorial
For years, official Chinese rhetoric on Iran invoked their shared historical status as grand civilisations that have struggled against western aggression. Bilateral ties date back more than half a century. In 2021, they signed a comprehensive strategic agreement pledging $400bn of Chinese investment. And China’s economy is already flagging; it has just set its lowest growth target since 1991, underlining the importance of stability for Beijing. So its muted response since the US and Israel launched their war is striking. Beijing condemned the attack, but it was Washington that postponed…
China has been preparing for a global energy crisis for years. It is paying off now
Xi Jinping has been preparing for a crisis like this for years. China must secure its energy supply “in its own hands”, its president was reported to have said during a visit to one of its vast oilfields in 2021. The US-Israel war on Iran plunged the Middle East into a deep conflict, with the strait of Hormuz – one of the most important waterways in global trade – all but closed and key energy facilities across the region under attack. Oil exports from the Middle East have tumbled 61%…
Iran’s Hormuz blockade is its most powerful card against Trump and Israel. It won’t back down easily | Jack Watling
The US and Israeli decision to attack Iran has sent economic shockwaves around the world. About 20% of global oil supplies have been effectively blocked from transiting the strait of Hormuz since Iran began attacking ships, resulting in a huge jump in oil prices. Militarily, while the United States has the firepower to significantly reduce Iran’s capacity to use the strait as leverage, it is unlikely to be able to eliminate the threat entirely. Reopening the strait, therefore, is not only a question of military capabilities but of diplomacy, and…
If oil price shocks weren’t bad enough, Trump’s war could have other unintended consequences | Adam Hanieh
With the US-Israeli war against Iran in its second week, energy markets are in turmoil. On Thursday, the price of Brent Crude Oil topped $100, only slightly lower than the $119 peak per barrel on Monday. These swings have focused attention on key energy choke points such as the strait of Hormuz, where about one-fifth of the world’s shipped oil and liquefied natural gas (LNG) passes each day. This shutdown of the strait will be felt in people’s everyday lives for months to come, particularly in the form of spiralling…
Will China own the green energy future? – podcast
The conflict in the Middle East has sent energy prices soaring, and for countries that import a high proportion of their fuel, it’s a reminder of the perils of energy dependence. As the recipient of almost 90% of Iran’s crude oil, China knows this only too well. Which partly explains why the country spent the last decade heavily investing in clean power. To find out what else could be driving the strategy, Madeleine Finlay speaks to senior China correspondent Amy Hawkins. And energy correspondent Jillian Ambrose reflects on how China’s…