The conflict with Iran and the closure of the Strait of Hormuz are causing a global energy crisis. Countries around the world are introducing austerity measures, fuel rationing, and returning to coal.

The European Union is balancing between the green transition and urgent energy needs. Italy postponed its coal phase-out plan, while Germany is considering extending the operation of thermal power plants. Several member states have reduced electricity taxes and introduced fuel subsidies.

Asia is the hardest hit. India ordered maximum capacity at thermal power plants, Japan reactivated less efficient facilities, and South Korea postponed its coal exit deadlines. Sri Lanka introduced fuel rationing and a four-day workweek.

Africa is particularly vulnerable as a net fuel importer. South Africa temporarily halved fuel taxes, while Ethiopia introduced subsidies.

The International Energy Agency called for conservation measures, including reduced air travel and slower driving speeds.