The story, published on April 13, 2026, by Associated Press reporters Chan Ho-him and journalists Aniruddha Ghosal and Anton L. Delgado explains how the conflict with Iran —which began in late February of 2026—has closed down much of the Strait of Hormuz, causing global energy prices to spike and revealing fossil fuel vulnerabilities. China dominating in batteries (85% of world production), EVs (over 70%) and solar, with rising demand for its exports which were $22.3 billion last December 2025 (up 47%).
China’s Strategic Edge
Xi Jinping’s pre-war energy investments had already linked energy with a national security shell, lowering oil dependency through renewables and reserves. To Sam Reynolds of IEEFA, the conflict confirms Beijing’s operating philosophy is superior, in contrast to U.S. President Trump’s “drill, baby drill” fossil fuels first position. Shares for companies like BYD (leading EV manufacturer) and CATL spiked 11-24% in March.
Global Impacts
Asian countries dependent on Hormuz shipments are experiencing shortages, but Pakistan (50GW of Chinese-owned solar) and Indonesia (new EV push) are comfortably insulated. Demand for EVs in Europe rises 33%, and the UK has more solar inquiries. Tariffs keep Chinese EVs shut out of the U.S. market, yet worldwide demand is pushing down on prices for Asian markets — and Southeast Asia has opened up to less costly models from China.