Iran war slows oil sales and boosts renewables, including in Switzerland

Six months after the first attacks on Iran on Feb. 28, the conflict is beginning to reshape energy markets in a way that is visible in Switzerland as well as elsewhere.

Several reports published in August point to a simple shift: less oil and more electric vehicles. As the war drove up the price of fossil fuels, consumers turned toward renewable energy, echoing the effect that the start of the war in Ukraine had on Europe’s energy transition.

The closure of the Strait of Hormuz has sharply increased energy costs for importers. The Centre for Research on Energy and Clean Air calculated that buyers of oil, petroleum products and gas paid $330 billion, or 267 billion Swiss francs, more than previously expected.

At the same time, clean-energy technologies saved importers $20 billion, equivalent to 16 billion Swiss francs. Demand for solar panels and electric vehicles increased as hydrocarbon trade weakened.

Switzerland is part of this wider movement. The reports describe a global trend in which higher fossil-fuel prices are encouraging consumers to rely more on renewable alternatives, even as the conflict continues to weigh on conventional energy trade.