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Bloomberg
Oil and natural gas prices have “soared” after the US navy seized an Iranian ship during a “chaotic weekend that saw Tehran firing at vessels and reimposing controls in the strait of Hormuz”, reports Bloomberg. The outlet continues: “Brent jumped as much as 7.9%, erasing most of its declines on Friday after a reopening of the key waterway was announced, while European gas surged as much as 11%. Tehran closed the chokepoint again on Saturday, after it said a US blockade of Iran-linked ships violated a ceasefire agreement that ends Tuesday.” On Sunday, US president Donald Trump said the US had seized an Iranian-flagged cargo ship that tried to get around the naval blockade, reports the Associated Press. Earlier, Trump said his representatives would be in Pakistan today for negotiations, notes BBC News. But Iran's state media said Tehran had "no plans for now to participate" in the talks, although Iranian officials have not clarified the country's position yet, the outlet adds. Oil prices are back near $90 a barrel, says the Wall Street Journal.
On Friday afternoon, oil prices had “tumbled” after Iran said it would reopen the strait of Hormuz, reports the Financial Times. Trump posted in block capitals on Truth Social that the route was “Fully open and ready for full passage. Thank you!”, says Axios. However, even before the weekend’s developments, analysts were questioning whether these announcements “were anywhere near enough to provide ship owners the confidence needed to resume transit”, says Axios. One analyst tells Reuters that “within hours…there were already tankers that were fired upon by the Islamic Revolutionary Guard Corps (IRGC), leading to more fears from the shippers on attempting to leave”. However, “more than a dozen” tankers did manage to pass through, says another Reuters article. In an interview with BBC News, a former IRGC commander says that Iran would “never” give up control of the strait and that “Iran will decide the right of passage, including permissions for vessels to pass through”. This will soon be enshrined in law, he tells the outlet.
MORE ON IRAN WAR
The world has lost more than ”$50bn worth of crude oil that has not been produced since the Iran war began nearly 50 days ago”, says Reuters. Politico’s reporting from last week’s International Monetary Fund and World Bank spring meetings concludes that the Iran war is “setting the world on a new energy path”. Chris Wright, the Trump administration’s energy secretary, has said that US gasoline prices might not come back below $3 a gallon until 2027, reports the Guardian. The US government has extended a sanctions exemption on the sale of some Russian oil, reports the New York Times, two days after saying it would not. Reuters publishes two commentaries on the stop-start shipping traffic through the strait of Hormuz. BBC News: “The insider [oil] trading suspicions looming over Trump's presidency.”
Ian Johnston, Financial Times
The European Commission will encourage remote working and public transport subsidies to cut fossil fuel use in response to the Iran war, reports the Financial Times. According to a document seen by the newspaper, the commission will present member states with a string of measures to offer “immediate relief” on high energy prices. The recommendations, based on those implemented after Russia invaded Ukraine, include suggesting businesses ensure at least one day of home working and lowering VAT on heat pumps, boilers and solar panels, the FT says. It adds: “Brussels will also set ‘ambitious’, but undisclosed, targets for electrification, according to the document, which contains numerous gaps and has yet to be finalised.” The package of measures is set to be presented on Wednesday, notes Politico.
Meanwhile, the Financial Times reports that the commission is “ready to require jet fuel stocks to be shared across the EU”. It continues: “Energy commissioner Dan Jørgensen said the European Commission would increase monitoring of fuel stocks and refining capacities, co-ordinate supplies and potentially redistribute jet fuel across the bloc, echoing pandemic-era efforts to share vaccine supplies.” Jørgensen tells the newspaper: “We are moving from a crisis that has so far been primarily a crisis of too high prices. Now, we’re moving towards a crisis of supply. This we will see first and primarily on jet fuels. We are approaching this very rapidly.” Euractiv and Reuters have similar reporting. The International Air Transport Association warned on Friday that flights in Europe could start to be cancelled from the end of May due to a lack of jet fuel, reports Reuters.
MORE ON EUROPE
Speaking after a meeting of 51 countries on Friday, UK prime minister Keir Starmer announced that the UK and France will lead a multinational mission to protect commercial shipping routes in the strait of Hormuz, reports BBC News – but only after fighting in the region ends. The European Commission has called on Turkey to reverse its “unacceptable” decision not to invite the Republic of Cyprus to a preparatory UN climate meeting last month, reports Euractiv. The International Monetary Fund has urged the EU not to pause its emissions trading system, warning it would come with “huge” risks that might jeopardise investment, reports Bloomberg. Sales of fully electric cars in Europe's main car markets jumped by almost one-third in the first quarter of 2026, says Reuters. Writing for Euractiv, Sara Aagesen – Spain’s third vice-president and minister for ecological transition – says that “Europe’s dependence on fossil fuels remains a strategic vulnerability”.
The Economic Times
The latest global energy review from the International Energy Agency (IEA) shows that the world’s emissions rose at a slower rate in 2025 as the expansion of solar power helped developing countries offset emissions growth in advanced economies, reports the Economic Times. It continues: “Energy-related CO2 emissions rose 0.4% in 2025, slowing from recent years as a boom in solar power supply dominated changes in the supply mix…Overall global energy demand growth eased to 1.3%, just below the average of the previous decade, while gas demand growth slowed sharply because of relatively high prices in the first half of the year.” The report finds that solar was the “single biggest contributor to global energy supply growth in 2025”, says Electrek, which notes that it “accounted for more than 25% of the increase – the first time a modern renewable has led global primary energy growth”. Bloomberg has the headline: “Global 2025 power demand rose as EV, data centres grew, IEA says.” Carbon Brief’s Dr Simon Evans has a detailed thread on BlueSky unpacking the report’s highlights.
MORE ON ENERGY TRANSITION
A report from the Global Wind Energy Council shows that the wind industry installed a record 165 gigawatts of new capacity last year, up 40% from 2024 and mostly driven by China, says Reuters. A report by the Centre for Research on Energy and Clean Air (CREA) reveals that a “predicted ‘coal comeback’ due to the Iran war energy crisis has not materialised”, reports Euronews.
Heather Stewart, The Guardian
Ed Miliband will “double down” on Labour’s commitment to net-zero this week, insisting that, as fossil fuel prices soar, “the era of clean energy security must come of age”, reports the Guardian. The UK energy secretary is expected to announce a package of new policies tomorrow in response to the unfolding energy crisis, the newspaper explains: “These will include speeding up the warm homes plan to encourage the rapid take-up of solar panels and electric vehicles; expanding the use of solar on public land; and delinking gas and electricity prices, to cut consumers’ bills.” In his speech, Miliband will warn that, “as we face the second global energy shock in less than five years, the lesson for our country is clear; the era of fossil fuel security is over”, the article says. However, it adds, Miliband “will dodge for now the controversial question of whether to allow drilling in the Jackdaw and Rosebank fields”.
At the same time, in an open letter to civil servants, energy minister Michael Shanks, has warned civil servants that delays to net-zero targets are unacceptable, reports the Daily Telegraph. According to the article, Shanks wrote: “We have been clear that further slippage is not acceptable and have set expectations for a firm, coordinated response.”
MORE ON UK
A Chinese wind turbine maker has accused Ed Miliband of blocking a £1.5bn factory for “political” reasons, reports the Daily Telegraph. UK data centres are “demonstrating surging interest in connecting to the natural gas network after developers have faced significant delays accessing the power grid”, says Bloomberg. The Sunday Times: “The myths and realities of North Sea oil.” A “giant” new gas field in Yorkshire is “to be exploited for mining Bitcoin rather than boosting Britain’s energy supplies”, claims the Daily Telegraph. Entrepreneur and heat-pump sceptic Dale Vince says that money allocated for grants to subsidise a switch to heat pumps should instead be spent on the military, reports the Sun. [See the recent Carbon Brief factcheck of Vince’s claims.] The Observer: “Millions paid out to keep Shetland windfarm idle – even in a gale.”
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