Governments Struggle to Respond to Iran War Oil Price Shock

Many government policies risk deepening fossil fuel dependence that caused the crisis in the first place.

Apr. 2, 2026 at 3:54am

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A new analysis by Greenpeace has found that many government responses to the oil price shock caused by the Iran war risk reinforcing the fossil fuel dependence that made the crisis so damaging. While some countries are taking measures to reduce energy use and accelerate renewable energy, others are doubling down on oil, gas, and coal subsidies. Experts warn that the real solution is to reduce reliance on fossil fuels and invest in decentralized, renewable-powered energy systems that are more resilient to disruptions.

Why it matters

The Iran war oil shock is exposing the vulnerability of fossil fuel-driven economies. When so much of the global economy depends on a centralized and combustible resource like oil, any disruption to supply chains can quickly ripple across daily life. This crisis is not just about carbon emissions or climate targets - it’s about resilience, security, and survival. Governments need to understand renewable energy as a security strategy, not just an environmental one.

The details

Greenpeace has identified and analyzed 37 government policies introduced since the start of the Iran war on February 28, 2026. Some measures, like reducing government energy use in the Philippines and accelerating renewable projects in Egypt, point in a better direction. But many others, such as fuel price caps in South Korea, lifting coal power generation limits, and diesel tax cuts in Brazil, risk deepening fossil fuel dependence. These policies may offer short-term relief, but they exacerbate the long-term vulnerability that caused the crisis in the first place.

  • The Iran war began on February 28, 2026.
  • Since then, Greenpeace has analyzed 37 government policies introduced in response to the oil price shock.

The players

Greenpeace International

An international environmental organization that has analyzed government responses to the Iran war oil shock.

International Energy Agency (IEA)

The global energy authority that is tracking energy conservation measures taken by governments in response to the crisis.

Lee Jae-myung

The President of South Korea, who stated that the crisis presents a "good opportunity to swiftly and extensively transition to renewable energy."

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What they’re saying

“I think this would be a good opportunity to swiftly and extensively transition to renewable energy.”

— Lee Jae-myung, President of South Korea

“Every cent spent on war and fossil fuels is a cent stolen from a fair and green future, and public money should build a liveable planet rather than bankroll destruction.”

— Camilo Sánchez, Communications Manager, Greenpeace International

What’s next

Governments around the world will continue to introduce new policies in response to the ongoing oil price crisis caused by the Iran war. Experts will be closely watching to see which countries prioritize short-term fossil fuel subsidies versus long-term investments in renewable energy and energy efficiency.

The takeaway

This crisis highlights the urgent need for governments to reduce their reliance on fossil fuels and invest in decentralized, renewable-powered energy systems that are more resilient to disruptions. The real solution is not to double down on oil, gas, and coal, but to accelerate the transition to clean, secure, and affordable energy.