Global Energy Crisis: Impact of War Conflict in the Middle East Region

The Global Energy Crisis is caused by various factors, and one of the main causes that is often overlooked is the impact of conflicts in the Middle East region. The region is rich in energy resources, especially oil and natural gas, so tensions there often affect global markets. First, conflicts in the Middle East often create market uncertainty. When violence escalates, such as in war, investors become anxious and energy prices tend to soar. This price increase has a direct impact on the costs of producing and distributing goods throughout the world. For countries that depend on imported energy, price spikes can lead to inflation and significant economic impacts. Second, wars in the Middle East resulted in supply disruptions. For example, closure of major distribution lines and attacks on energy infrastructure can reduce production capacity. This was seen in drone attacks on Saudi Arabian oil facilities in 2019 which caused a dramatic decline in production. The impact of this uncertainty is being felt around the world, leading countries to seek alternative energy sources and accelerating the transition to renewable energy. Furthermore, this conflict has an impact on the energy policies of major countries. They are starting to strengthen relationships with more stable energy suppliers outside the Middle East such as the US or countries in Norway and Canada. Dependence on energy from conflict-affected regions is shrinking, triggering a shift in global energy strategy. In addition, the impact of conflict also encourages investment in new energy technologies. As the price of traditional energy increases, more companies are investing in renewable energy, such as solar and wind. This initiative not only focuses on sustainability but also seeks to mitigate risks from geopolitical instability. Tensions in the Middle East are also affecting international relations. Major powers engage in strategic alliances, which often focus on securing energy supplies. They seek to reduce exposure to geopolitical risks that could affect the stability of energy supplies, thereby reinforcing the importance of better energy diplomacy. Lastly, the energy crisis resulting from this conflict often triggers debates about sustainable energy. With more and more countries calling for a green transition, the negative impacts of dependence on fossil energy are becoming increasingly clear. This demands a new approach to energy policy that can reduce dependence on geopolitically unstable resources. The global energy crisis resulting from conflict in the Middle East illustrates the interconnection between geopolitics and energy economics. Through a deeper understanding of this relationship, various parties can formulate better strategies to address future energy challenges.