The ongoing conflict in the Middle East has driven oil and gas prices sharply higher, disrupting economic activity around the world, according to multiple sources. Countries more dependent on Middle Eastern oil, natural gas, and fertilizers are experiencing the largest hits to GDP. In emerging markets, higher fertilizer costs have reduced agricultural production, which accounts for a larger share of their economies. The disruption of global energy supplies is being felt worldwide.

Officials have been unable to turn the ceasefire into a deal to permanently end the war. Iran has maintained control over the Strait of Hormuz during the truce. Reopening the Strait of Hormuz and repairing infrastructure could take months or years, and the energy and supply chain crisis is expected to persist regardless of de-escalation between the US and Iran.

Simon Stiell, Executive Secretary of the UN Framework Convention on Climate Change, said the volatility underscored the strategic value of renewable energy. Renewables turn the tables, as sunlight doesn’t depend on narrow and vulnerable shipping straits, and wind energy does not require large military protection.