| The Iran war is causing all kinds of economic headaches worldwide. But in the long run, it could push |
First, El Nino, a periodic warming of the equatorial eastern Pacific, seems imminent. As we've already reported, is expected to be huge. They're calling it a super El Nino, which will make any effects from the phenomenon writ large.
Strong El Ninos can substantially heat up the world. Earth's temperature is already near record highs thanks to climate change. If El Nino and climate change team up the way forecaster think, weather and climate disruptions in the form of record storms, record heat, massive droughts and floods could really amplify many of the problems the Iran war is causing.
"A climate change-fueled El Nino will amplify the growing shocks of the Iran war, many of which will unfold over the coming year even in the unlikely case that risk of renewed conflict resolves soon."
The publication noted us the situation is reminding us "That Mother Nature gets a vote on our priorities, too, and that climate resilience is inseparable from global security goals."
Even if by some miracle the Iran war ends tomorrow, the problems and potential crises remain.
"Even if the strait is durably opened, it will take time to clear backlogged ships, for insurers to feel confident that transit is safe, and for damaged or shuttered oil and gas facilities to resume production. Countries would normally be stocking up on natural gas over the spring and summer for winter heating needs, and El Nino could further intensity pressure with intensified heat, electricity demand for cooling, and energy grid strips this summer
Countries in Southeast Asia are already scaling back on air conditioning, concerns that dangerous summer temperatures could crash electric grids and kill citizens."
Here in the United States, A Brown University analysis released on May 18 shows Trump's Iran war has cost American consumers $41.9 billion more at the fuel pumps since late February.
OTHER ASPECTS
This isn't just about oil and gas.
A third of global maritime nitrogen fertilizer trade are blocked due to the closed Gulf of Hormuz. Also, says Lawfare, countries that depend on Middle Eastern gas to produce their own fertilizers have shut down production.
Also, "farmers who are planting tomorrow's food now have been forced to delay planting, switch crops, or accept subpar yields. Food security can be disrupted further as fuel and logistics costs rise, agriculture land is repurposed for newly economical biofuels, and countries potentially react with protectionism and export restrictions that spike prices further."
In the long run, this mess might undermine Trump's goal of propping up the fossil fuel industry. Oil shocks in the 1970s and 1980s, the Gulf War of 1990-91 and the Ukraine war all prompted industry to emphasize fuel efficiency. Global per capital petroleum use declined after the 1970s oil shock and never recovered noted Juan Cole in Informed Consent.
Cole argues that the Straight of Hormuz crisis shows signs of what he calls a "chronic ailment." Iran will probably always be tempted to develop a nuclear arsenal. Israel and the United States will probably keep striking. "In short, Israel and the United States have destabilized the Persian Gulf and global oil and natural gas supplies for the foreseeable future."
In other words, the price at the pump is going to stay annoyingly high for a long time. And that's the least of our problems.
In the United States, Trump is still squawking drill, baby drill. The Trump administration ended tax breaks worth up to $7,500 last year. Despite that, car buyers in the U.S. will probably keep turning more and more to EVs if gas prices stay high.
Nations around the world see the writing on the wall. Cole, in Informed Consent, has many examples.
In the United Kingdom, EV sales rose a record 24% over the same month a year earlier. It helped that the average cost of EVs in the UK are now a little less expensive there than similar gasoline-powered cars. Europe is seeing a big jump in demand for rooftop solar systems.
China is going through a boom in EV production. In 2024 they produce more than 12 million electric, hybrid and fuel-cell vehicles. India is building an EV future, currently building out a network of charging stations. Pakistan has reported a boom in electric vehicle sales since the Iran war started.
Asia is especially prone to disruptions in the Persian Gulf oil pipeline, so you can see why the 4.8 billion people there are embracing an electric vehicle future.
"Those who've fought to keep the world hooked on fossil fuels are inadvertently supercharging the global renewables boom," said Simon Stiell, Executive Secretary of the UN's climate secretariat UNFCCC, as reported in Reuters.
Trump's war in Iran is all bad news. For us and for Trump. With this war, Trump's goal of propping p the oil and gas industry forever might be slipping through his fingers.
