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Iran War Upends Global Energy Trade as Buyers Scramble for Alternatives

Importers face unreliable flows through the Strait of Hormuz.

Overview

  • Attacks around Iran choked tanker traffic through the Strait of Hormuz, and a fragile ceasefire left the reopening uncertain.
  • Governments and the International Energy Agency coordinated emergency stock releases to steady near‑term supply.
  • European and Asian buyers sought other fuel sources, leaning more on coal and renewables and reconsidering nuclear plant retirements.
  • Japan, which relies on the Middle East for more than 95% of its crude, faced a sharp squeeze and executed its largest strategic reserve release.
  • Analysts say Japan must retool refineries to run non‑Middle Eastern crude and restart more nuclear plants to reduce long‑term risk.