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The world is facing an energy crisis reminiscent of the 1970s, with rising energy prices and fears of stagflation. In response, countries may turn to coal, a dirtiest of fuels, to meet their energy demands.Historically, energy crises have led to increased investment in coal production. During Jimmy Carter's presidency, the US aggressively developed domestic coal sources, which became America's 'black hope'. Similarly, Donald Trump's America is doubling down on fossil fuels, pushing to develop US coal and oil reserves.The energy crisis sparked by the US-Iran war highlights the need for renewable energy sources. However, the conflict has raised hurdles to investing in renewable power generation capacity, including inflation and interest rates. As a result, countries around the world, including Japan, India, and Europe, are considering or have already ramped up their use of coal.Despite the progress made in decarbonization and the switch to cleaner gas in power generation, the current crisis could unravel these efforts. Coal consumption worldwide has increased by about 1.3bn tons since 2020, to 8.8bn tons, driven by demand in India and China. The International Energy Agency (IEA) reports that coal supplied 23% of the world's energy in 2000, increasing to 28% in 2023.The global energy landscape is shifting, with renewable energy sources becoming increasingly important. However, the ongoing conflict in Iran and rising energy prices pose significant challenges to the transition to a low-carbon economy.

US President Donald Trump has stated that his 'preference would be to take the oil' in Iran, sparking concerns about the potential for a US invasion or occupation of the country. Iran is one of the world's biggest oil producers, holding around 24 percent of the Middle East's and 12 percent of the world's proven oil reserves, with about 157 billion barrels of proven crude oil.The Trump administration has threatened to target Iran's energy infrastructure, including oil wells, if Tehran does not reopen the Strait of Hormuz, which has been under a de facto Iranian blockade for weeks, triggering a global energy crisis. The US has also unveiled plans to prepare for limited ground operations in Iran, potentially including raids on Kharg Island and coastal sites near the Strait of Hormuz.Seizing Iranian oil would not be easy, as the US would have to occupy Iran's oil production sites and refineries, essentially occupying mainland Iran. However, if the US were to lift sanctions on Iranian oil after seizing it, it could lead to a flow of more Iranian oil into global markets, bringing down oil prices.The US-Israeli war on Iran has already sent global oil prices soaring, with benchmark Brent crude rising to more than 3 percent on Monday to $116 a barrel – the highest level in nearly two weeks. The oil price was about $65 per barrel before the war.In 2023, Iran's gross domestic product (GDP) was around $457.5bn, according to World Bank data. Iran's net oil export revenues were estimated at $53bn, equivalent to roughly 12 percent of Iran's GDP.This is not the first time the US has shown an interest in Iranian oil. In 1953, the government of Mohammad Mossadegh, Iran's first democratically elected prime minister, was toppled in a CIA-orchestrated coup after he nationalised the British-controlled firm Anglo-Iranian Oil Company (AIOC), the predecessor of modern-day BP.

Australia's government has taken swift action to alleviate the financial burden on its citizens, announcing a plan to cut petrol and diesel taxes by half from April 1 to June 30. This move comes as the international benchmark for crude oil surged above $116 a barrel, its highest level in nearly two weeks, amid the escalating conflict in the Middle East.Prime Minister Anthony Albanese made the announcement on Monday, stating that the fuel excise would be reduced by half in recognition of the 'financial stress' caused by rising energy prices. The cut is expected to reduce the cost of petrol by 26.3 Australian cents ($.18) per litre, saving motorists nearly $19 ($13) on a 65-litre (17-gallon) tank of fuel.Albanese emphasized that the government is acting to be 'over-prepared' as the impact of the war on the other side of the world plays out in Australia. The government will also suspend its charge on heavy vehicles for three months. While Australia is a major exporter of coal and natural gas, the country sources about 80 percent of its refined fuel needs from overseas.However, some critics argue that the tax cut may not have a significant impact, as petrol prices have risen by about 33 cents ($0.21) per litre in the past two weeks alone. The National Roads and Motorists' Association in Australia noted that a similar tax cut after Russia's full-scale invasion of Ukraine in 2022 was barely felt by motorists.Despite these concerns, the Australian government remains committed to supporting its citizens during this challenging time. Minister for Energy Chris Bowen assured parliament that Australia's energy supply remains secure, with all expected fuel deliveries arriving as scheduled, and that the country has 39 days of petrol in emergency stockpiles, as well as about 30 days each of diesel and jet fuel reserves.

China's economy is heavily reliant on oil refining, particularly in Shandong province, where independent 'teapot' refineries play a crucial role. These small refineries, often operating on thin margins, have been vital in keeping China's economy stable amidst the global energy crisis. The crisis began with US-Israel strikes on Iran, causing chaos in the Middle East and prompting Tehran to effectively close the Strait of Hormuz, a vital waterway for oil and gas flows. However, Iranian oil has continued to flow to China, with imports reaching about 1.6 million barrels per day. China's teapot refineries are now facing significant challenges due to rising crude prices. Iranian light crude, which was previously $11 cheaper than Brent crude, now has a discount as low as $2 per barrel. This has reduced the refineries' profits, with some workers fearing salary cuts. The impact is being felt across the industry, with Luqing Petrochemical, one of Shandong's prominent teapots, allegedly sanctioned by the US for buying Iranian oil. The company has started pressuring employees to quit by cutting salaries and relocating them to difficult work sites. The economic shock is also affecting ordinary people in China, with the government intervening in the retail fuel market to reduce a planned increase in petrol and diesel prices. However, if prices continue to rise, some teapot refineries may go bust. The long-term threat to the industry is not just the war but also the rise of electric vehicles, according to Uncle Wang, a petrol station owner in Weifang. As China transitions to cleaner energy sources, the demand for oil is expected to decline, posing a significant challenge to the teapot refineries and the thousands of people they employ.

Pakistan's capital, Islamabad, has become a hub for diplomatic activity as key regional powers converge to address the escalating conflict between the US and Iran. Egyptian Foreign Minister Badr Abdelatty, Turkish Foreign Minister Hakan Fidan, and Saudi Foreign Minister Faisal bin Farhan Al Saud have arrived for talks with Pakistani Deputy Prime Minister Ishaq Dar. The meetings aim to bring an end to the US-Israeli war on Iran, which has entered its 30th day and caused a global energy crisis. The conflict has led to a significant increase in tensions in the Middle East, with 20 percent of the world's oil and gas supplies passing through the Strait of Hormuz, which has been choked by Iran. Pakistan is walking a diplomatic tightrope, with close defense ties to Saudi Arabia and cultural ties to Iran. The country is also home to the second-largest Shia population in the world after Iran. Analysts describe Pakistan's role as a 'very delicate balancing act' as it tries to bring the Americans and Iranians back to the negotiating table. The diplomatic push is driven by severe economic fears, with millions of Pakistani citizens potentially losing their jobs in the Gulf region if the conflict spreads. The stakes are existential for Islamabad, which risks a major crisis if energy supplies decline. Experts point out that the enormous economic costs borne by the Gulf countries have dropped drastically due to the closure of the Strait of Hormuz. Iranian drone and missile attacks have targeted energy and industrial facilities, forcing petroleum companies to declare force majeure on supply contracts. The Islamabad gathering serves as a foundational step for an 'Islamic alliance' designed to counter the Israeli project in the region, address geopolitical vacuums, and mitigate uncertainties surrounding future US involvement.

Qatar's Prime Minister and Foreign Minister, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, held crucial talks with senior US officials in Washington, DC, as tensions escalate in the Gulf region due to the ongoing US-Israeli war on Iran.The meetings, which included US Vice President JD Vance and US Secretary Scott Bessent, focused on strengthening the "close strategic cooperation" between Doha and Washington, particularly in defense partnerships given the current regional challenges.Both sides emphasized the importance of ensuring the sustainability of energy supplies and maintaining the flow of liquefied natural gas from Qatar to global markets, supporting global energy security.Vance praised Qatar's active role in promoting regional stability and enhancing global energy security, highlighting the robust strategic partnership between the two nations.The Gulf region has been under heightened tension since February 28, when the US-Israeli war on Iran began, resulting in over 3,000 deaths across the region, mostly in Iran and Lebanon.Iran has since launched drone and missile attacks on Israel, Jordan, Iraq, and Gulf states, prompting regional leaders to urge Iran to cease these attacks to protect civilians.Earlier this month, Qatar reported that Iranian missile attacks on the Ras Laffan Industrial City, the country's main gas facility, caused "significant damage."The conflict has led to an unprecedented global energy crisis as Iran has effectively closed off the Strait of Hormuz, through which one-fifth of the world's oil passes.On Thursday, Sheikh Mohammed also met with US Secretary of Defense Pete Hegseth in Washington, focusing on developing defense and security collaboration amid regional challenges.The Qatari Cabinet has condemned Iranian attacks on Qatar and its neighbors, calling for an immediate halt to these actions.

The conflict between the US, Israel, and Iran has entered its fourth week, with the Strait of Hormuz remaining effectively closed. This has led to a broadening of the global energy crisis, with the economic outlook darkening across Asia, Europe, and beyond.Japan has responded by releasing 80 million barrels of oil from its national reserves, enough to last for 45 days. The country's reliance on Middle Eastern crude oil imports stands at 90 percent.The Organisation for Economic Co-operation and Development (OECD) has warned that the conflict will have a significant impact on the UK economy, predicting inflation of 4 percent this year. UK Foreign Secretary Yvette Cooper has stated that Iran cannot be allowed to hold the global economy hostage.The uncertainty surrounding Trump's policy on Iran has led to the emergence of the TACO trade, an acronym that stands for Trump Always Chickens Out. This phenomenon refers to investors betting that the US president will back down from his threats, resulting in profits for those who bought in.Observers note that Trump's inconsistent messaging has created an opportunity for investors to bet on his policy reversals. For example, Trump extended his deadline for Iran to reopen the Strait of Hormuz from 48 hours to five days, and later promised to hold off from attacks on Iran's energy facilities for an additional 10 days. This type of about-face has opened the door to investors willing to bet that the US president will back down.Lena Komileva, chief economist at consultancy firm (g+)economics, notes that global markets have been less inclined to rebound after Trump's Iran-related policy reversals compared to similar shifts in response to his tariff policies. This is due to the complexity of the conflict and the unique objectives of the parties involved.

The conflict between the US, Israel, and Iran has escalated with a series of attacks on Iranian cities, including the capital Tehran, and other locations such as Tabriz, Isfahan, and Karaj. These attacks occurred even as US President Donald Trump claimed that Washington was engaged in productive conversations with Tehran to end the war.Iranian media reported that Israeli-US strikes targeted two gas facilities and a pipeline, hours after Trump postponed planned attacks on power infrastructure. The attacks resulted in partial damage to facilities in central Iran, including a gas administration building and a gas pressure regulation station in Isfahan.A leading scholar and professor at a science university in Tehran, Saeed Shamaghdari, was killed alongside his two children in an attack on his residence north of the capital. Iran's English-language news channel Press TV identified Shamaghdari as a teacher at the engineering department of the Iran University of Science and Technology.The head of Iran's emergency service, Jafar Miadfar, reported that 208 children have been killed since the war began on February 28, with 168 of them dying in the US missile strikes on a girls' school in Minab city. Rights groups have called for an investigation into the Minab attack as a potential war crime.More than 1,500 civilians have been killed across Iran, according to the Iranian government. The US-Israel war on Iran has expanded across the Middle East, leading to a spike in oil prices and triggering a global energy crisis.Despite the escalation of violence, Iran's Foreign Minister Abass Araghchi has held calls with several countries, including Egypt, Pakistan, and Oman, in an attempt to open a diplomatic channel. However, senior Iranian officials have denied that Iran is engaged in talks with the US, contradicting Trump's claims of productive conversations.European Commission President Ursula von der Leyen has emphasized the need for a negotiated solution to the conflict, warning that the situation is critical for energy supplies and condemning Iran's efforts to block energy exports through the Strait of Hormuz.

Japan has initiated the release of oil from its emergency reserves in response to the escalating global energy crisis triggered by the Iran-Israel conflict. The crisis has led to the effective closure of the Strait of Hormuz, a critical waterway for global oil supplies.The decision to release oil reserves was announced on Monday through a notice published in the Japanese government's official gazette. This move follows Japanese Prime Minister Sanae Takaichi's announcement last week to unilaterally release 80 million barrels of oil from stockpiles due to supply concerns arising from Iran's threats against shipping in the strait.The International Energy Agency (IEA) has also pledged to coordinate the release of a record 400 million barrels to mitigate the market impact of the conflict. Despite these efforts, oil prices have surged, with Brent crude rising as much as 3% on Sunday before easing slightly on Monday. As of 05:45 GMT, Brent stood at $104.85 a barrel, marking a more than 40% increase since the start of the war on February 28.Japan, being one of the world's largest oil importers, relies on overseas fossil fuels for about 80% of its energy needs. The country also holds one of the world's largest oil reserves, sufficient to meet 254 days of domestic consumption. Tokyo has stated it has no plans to deploy its navy to the strait following a call from US President Donald Trump for other countries to help unblock the waterway.