Hormuz Strait Crisis Drives Gulf Nations to Accelerate Foreign Clean Energy Investments

On June 1, a Fortune report finds that driven by Iran’s blockade of the Strait of Hormuz and escalating tensions around Middle East energy supplies, Gulf nations are ramping up overseas renewable energy projects to boost energy security and drive economic diversification. The International Energy Agency (IEA) notes that months of conflict in Iran have caused one of the largest global oil supply disruptions on record. Facing rising geopolitical risks, Gulf states like the UAE and Saudi Arabia are pouring more investment into overseas wind, solar, and energy storage projects. Recently, UAE-based renewable energy giant Masdar signed a $22 billion joint venture deal with France’s TotalEnergies to combine their onshore renewable energy operations across nine Asian countries. Separately, Abu Dhabi’s sovereign wealth fund Mubadala has taken stakes in U.S. energy management platform Power Factors and the U.K.’s Hornsea 3 offshore wind project. Data shows as of January this year, Masdar’s global renewable energy installed capacity hit 65GW, up from 51GW in 2025. The firm aims to reach a 100GW capacity target by 2030. Yet, the Strait of Hormuz crisis is also hampering the Gulf’s own new energy development. Norwegian energy research firm Rystad Energy reports that in March 2025, the UAE’s solar module imports dropped from 767MW the prior month to 160MW; Saudi Arabia’s imports fell from 704MW to 80MW; and Oman’s imports hit zero. Meanwhile, supply chain disruptions and skyrocketing shipping costs have pushed the freight rate for a 20-foot standard container from Shanghai to the Gulf and Red Sea from a pre-conflict $980 to $4,131—higher than the peak seen during the pandemic. Rystad projects that renewable energy projects under construction across the Middle East face a 3 to 12 month delay risk. Analysts warn that if the Strait of Hormuz blockade continues through the second half of 2026 (H2 2026), some new energy projects may be pushed back to 2027, with more capital likely flowing to overseas markets with more stable supply chains.