The Price of Destruction The war in Iran and potential blockade of the Strait of Hormuz have significantly increased gas and oil prices in Europe, prompting a global shift towards renewable energy for security and independence. Record-breaking global capacity in solar and wind power was built in 2025, offering a cheaper alternative to gas-fired electricity and potentially saving billions in energy costs. This increased renewable capacity provides a faster and geopolitically unburdened route to energy security for importing nations.

• War in Iran and potential Strait of Hormuz blockade caused a ~30% rise in European gas and oil prices.
• Record 814 GW of solar and wind capacity were built globally in 2025, a 17% increase year-on-year.
• New renewable capacity could replace over a seventh of global gas-fired electricity production.
• Higher gas prices increase electricity costs, as the most expensive source sets the benchmark price.
• EU paid an extra €2.5 billion for gas imports in the first ten days of the Iran war.
• Spain, with 56% of electricity from renewables, is less exposed to volatile gas prices.
• Global solar and wind power saved over $40 billion since the start of the Iran war.
• Solar energy dominated new capacity additions, reaching 647 GW installed in 2025.
• Cumulative global solar capacity neared 2,900 GW by the end of 2025.
• Wind energy capacity grew significantly, reaching 167 GW installed in 2025 and a cumulative ~1,300 GW.