Gulf States Ramp Up $2.2 Billion Overseas Renewables Push as Hormuz Blockade Chokes Oil Output
Updated
Updated · Fortune · Jun 1
Gulf States Ramp Up $2.2 Billion Overseas Renewables Push as Hormuz Blockade Chokes Oil Output
3 articles · Updated · Fortune · Jun 1
Summary
A new wave of Gulf clean-energy spending has accelerated as Iran’s Strait of Hormuz blockade forces regional oil producers to curb output during the third month of the U.S.-Israeli war with Iran.
The push is showing up in concrete deals: Masdar signed a $2.2 billion 50/50 venture with TotalEnergies in April, while Mubadala bought into Power Factors and invested $325 million in Orsted’s Hornsea 3 offshore wind project.
The strategy reflects a broader Gulf effort to diversify energy security and economies even as the IEA calls the conflict the biggest oil-supply disruption in global market history.
At home, the same disruption is slowing renewable buildouts: UAE solar imports fell to 160 MW in March from 767 MW in February, Saudi Arabia’s dropped to 80 MW from 704 MW, and Oman’s fell to zero.
Supply-chain stress is deepening the delays, with Shanghai-to-Gulf container rates jumping to $4,131 from $980 and Rystad estimating active Middle East renewable projects face delays of three to 12 months.
With supply chains broken, is the Gulf's pivot to renewables now more of a financial strategy than a real energy transition?
As the world reels from the oil shock, are Gulf nations quietly winning the global race for green energy dominance?
Strait of Hormuz Blockade 2026: Global Energy Disruption, GCC Strategic Pivot, and the $60 Billion Renewable Race
Overview
The 2026 Strait of Hormuz blockade caused immediate and widespread disruption to global maritime trade. Marine insurers quickly withdrew coverage, leading to soaring war risk premiums and making transportation commercially unfeasible for most operators. As a result, about 90 percent of regular shipping traffic was redirected within hours, and around 600 oil, gas, and container ships were stranded on both sides of the Strait. Despite the chaos, a 'shadow fleet' of tankers continued to operate, accounting for over half of all large tanker and gas carrier movements during the initial days of the crisis. This situation highlighted the vulnerability of global energy supply chains and triggered urgent responses from affected countries.