"Roughly 20 million barrels per day of oil moved through Hormuz in 2024, equivalent to about one-fifth of global petroleum liquids consumption. When that waterway closed, oil prices spiked to $126 per barrel in what the U.S. Energy Information Administration has described as the largest supply disruption in global oil market history."
"Oil shocks are macroeconomic and geopolitical risks, plain and simple. Grid software, battery storage, distributed energy, industrial electrification: these are infrastructure investments that also happen to decarbonize."
"BloombergNEF reports that global energy transition investment reached $2.3 trillion in 2025, with grid investment alone at $483 billion. Since the closure, the Invesco WilderHill Clean Energy ETF is up 118% in a single month."
The geopolitical landscape has shifted the focus of climate founders from decarbonization to resilience. The closure of the Strait of Hormuz highlighted the vulnerabilities of an economy reliant on oil. Oil shocks pose significant macroeconomic and geopolitical risks. Investments in grid software, battery storage, and electrification not only decarbonize but also enhance resilience. Capital flows indicate a strong shift towards clean energy, with significant increases in investment and public market performance for clean energy companies following the Hormuz closure.
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