The escalating oil crisis caused by the war against Iran and the blockade of the Strait of Hormuz has prompted emergency measures worldwide, as fuel stocks shrink and prices soar. The International Energy Agency has called for actions such as flying less and driving slower, but the UK government is steering clear of demand-curbing measures, instead focusing on financial support for vulnerable households.
Chancellor Rachel Reeves is considering plans to add extra cash to a council-run fund to help those in need, but has ruled out the universal support offered during the last energy crisis. The IEA has warned against blanket subsidies, and New Zealand has introduced weekly cash payments to nearly 150,000 families as part of a fuel relief package.
In the US, President Donald Trump has threatened further strikes on Iranian oil infrastructure and lashed out at allies not joining the campaign, including the UK and France. The US has continued its 'drill, baby, drill' policy, blocking renewable projects and paying TotalEnergies $1bn to scrap offshore wind plans.
The EU has called for a faster clean energy transition, though some member states are slowing it down. Italy delayed its coal phaseout, Germany considers keeping coal plants online longer, and the European Commission proposed weakening its carbon price scheme. Meanwhile, Slovenia has begun rationing fuel, and Lithuania halved train ticket prices.
Across Asia, coal is returning as the crisis hits hardest. India has ordered coal plants to run at full capacity, Japan allowed less-efficient coal plants back, and South Korea delayed its phaseout. China is less exposed due to its recent shift towards renewables.
