Category: Due Diligence & Advisory

Why the Strait of Hormuz Crisis Will Reshape the Power & Renewables Industry

The Strait of Hormuz crisis highlights how vulnerable the global power and renewables industry remains to oil supply disruption. Around 20–25% of global seaborne oil passes through this narrow shipping route, meaning geopolitical tensions can quickly impact energy markets, logistics costs, and industrial supply chains.Even as electricity generation shifts towards renewables, oil still underpins transport, petrochemicals, and manufacturing processes used to produce solar panels, battery storage systems, transformers, and power electronics. As a result, oil market volatility can increase project costs, extend equipment lead times, and create uncertainty for renewable energy developers worldwide.