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Impact of Middle East conflict set to reshape energy investment plans
Gulf Today
|May 29, 2026
The far-reaching effects of the conflict in the Middle East are prompting countries and companies to rethink energy investment strategies in response to heightened concerns over energy security and the reliability of trade flows, according to a new IEA report.
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A crude oil tanker is berthed at a terminal in the port of Qingdao in China's eastern Shandong province.
The 2026 edition of the IEA’s annual World Energy Investment report highlights that the current energy crisis, stemming from the effective closure of the Strait of Hormuz, is changing risk perceptions and bolstering moves towards greater diversification. Coming just a few years after the energy crisis centred around war in Ukraine in 2022, today’s supply shock is expected to leave a lasting imprint on future investment priorities, particularly in Asia and the Middle East, where the impacts of the disruptions to shipping flows through the Strait of Hormuz have been felt most acutely.
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