Trump’s Iran conflict cuts the world off from a crucial energy source

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illuminem summarises for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:

🗞️ Driving the news: A series of Iranian attacks on energy infrastructure, including a drone strike on Qatar’s largest LNG facility, has disrupted global natural gas supplies, with far-reaching consequences for energy prices
• Qatar, a key supplier of liquefied natural gas (LNG), ceased production at its Ras Laffan plant after the attack
• Energy prices have spiked globally, especially in Asia and Europe, as nations scramble to secure alternative LNG sources

🔭 The context: Qatar is responsible for 20% of the world’s LNG exports, and its sudden halt in production has sent shockwaves through global energy markets
• The strikes are part of a broader Iranian offensive targeting U.S. allies in the Middle East, exacerbating existing tensions and disruptions in global oil and gas trade routes

🌍 Why it matters for the planet: The disruption to LNG supply could lead to a significant increase in reliance on more polluting energy sources like coal
• The potential backsliding on clean energy could slow global efforts to decarbonize and increase carbon emissions, further intensifying the climate crisis
• Conversely, countries investing in renewable energy may have a buffer against rising gas prices

⏭️ What’s next: Analysts predict an increased shift toward coal in countries heavily reliant on Qatari LNG, such as India, Taiwan, and Pakistan
• European nations may also bring back mothballed coal plants, potentially reversing progress on emissions reductions
• U.S. LNG exports are expected to rise, but the supply capacity is limited, leaving many countries to seek alternative solutions to mitigate energy shortages

💬 One quote: "Any wind farm, any solar installation in Europe is less natural gas they have to import," - Pavel Molchanov, Raymond James

📈 One stat: Asian spot LNG prices surged nearly 40% in the past few days, and European LNG futures increased by 70% since last Friday

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