Hormuz Strait Crisis Drives Gulf Nations to Accelerate Foreign Clean Energy Investments

BlockBeats News, June 1st, According to Fortune magazine's report, influenced by Iran's blockade of the Strait of Hormuz and the tense energy supply situation in the Middle East, Gulf countries are accelerating the deployment of overseas renewable energy projects to enhance energy security and drive economic diversification.

The International Energy Agency (IEA) stated that several months of conflict in Iran have led to one of the largest supply disruptions in the history of the global oil market. Faced with escalating geopolitical risks, Gulf countries such as the UAE and Saudi Arabia are increasing their investment in overseas wind, solar, and energy storage projects.

Recently, UAE's renewable energy giant Masdar signed a $22 billion joint venture agreement with France's TotalEnergies to integrate their onshore renewable energy businesses in nine Asian countries. At the same time, Abu Dhabi's sovereign wealth fund Mubadala has invested in the U.S. energy management platform Power Factors and the UK's Hornsea 3 offshore wind project.

Data shows that as of January this year, Masdar's global renewable energy installed capacity has reached 65GW, further increasing from 51GW in 2025, and it plans to achieve a 100GW target by 2030.

However, the crisis in the Strait of Hormuz is also impacting the Gulf region's own new energy development. Data from the Norwegian energy research firm Rystad Energy shows that in March this year, the UAE's solar module imports decreased from 767MW in the previous month to 160MW, Saudi Arabia decreased from 704MW to 80MW, and Oman dropped to zero.

Meanwhile, due to supply chain disruptions and soaring transportation costs, the freight rate for a 20-foot standard container from Shanghai to the Gulf and the Red Sea has increased from the pre-war $980 to $4,131, exceeding the peak during the pandemic. Rystad forecasts that renewable energy projects under construction in the Middle East will face a risk of 3 to 12 months delay.

Analysts believe that if the Strait of Hormuz blockade continues until the second half of 2026, some new energy projects may be forced to postpone implementation until 2027, and more capital may flow to overseas markets with a more stable supply chain.