Regional governments boost renewable energy spending to reduce reliance on Middle East oil imports amid geopolitical instability.
Southeast Asia has ramped up solar power investments following prolonged tensions in the Strait of Hormuz, disrupting global oil supplies. The crisis, which saw four months of near-conflict between the U.S. and Iran, has pushed nations to diversify energy sources away from fossil fuels.
Prior to the flare-up, the region relied heavily on oil imports, with over 30% of supply transiting the strait. Analysts note the shift mirrors broader trends after past energy shocks, including Russia’s invasion of Ukraine, which similarly spurred clean energy adoption.
Markets have responded by bidding up shares of regional solar firms, with the ASEAN Renewable Energy Index rising 8% since the ceasefire announcement.