How is your government responding to the Iran war and oil price shock

We analysed 37 government responses introduced since 28 February 2026 to the Iran war oil shock. Many risk deepening the fossil fuel dependence that caused the crisis in the first place.

The Iran war oil shock is exposing fossil fuel vulnerability

This is not just another spike in prices. It is a warning about how vulnerable a fossil fuel-driven economy really is. The International Energy Agency said this war is "creating the largest supply disruption in the history of the global oil market", and that is precisely what happens when countries depend on oil and gas. When so much of the global economy depends on a centralised and combustible resource moved through strategic chokepoints, war quickly turns into rising food prices, energy bills, transport costs and wider economic instability.

This is why the crisis is not only about carbon emissions or climate targets. It is about resilience, security and survival. The war has highlighted the inherent vulnerability of fossil fuel-based energy systems, because any disruption to shipping routes or supply chains can ripple across daily life in a matter of days. Governments and policymakers around the world are reacting to the shock, but many of their responses risk reinforcing the very system that made this crisis so damaging in the first place.

A family shops in a supermarket in Jakarta, Indonesia.

What governments should do in an oil price crisis

The most effective response is not to double down on oil and gas. It is to reduce dependence on them. South Korean President Lee Jae-myung put it clearly: "I think this would be a good opportunity to swiftly and extensively transition to renewable energy."

Countries that generate more of their own energy from wind and solar are less exposed to oil price shocks, disrupted shipping lanes and geopolitical blackmail. The more your government invests in renewable energy, the more secure your country and your pocket will be. That is why renewable energy should be understood not only as a climate solution, but also as a security strategy and a shield against the cost of living crisis.

March 2026: Greenpeace transport campaigner Marissa Reiserer protests against the windfall profits made by oil companies in the wake of the Iran war at a petrol station in northern Germany.

A good crisis response should do two things at once. It should protect people from immediate hardship, and it should speed up the shift to resilient, renewable-centred energy systems. That means demand reduction, efficiency, support for vulnerable households and faster deployment of clean, decentralised power, rather than new subsidies, tax breaks or infrastructure that prolong fossil fuel dependence.

How governments are responding to the Iran war energy shock

Since the war began on 28 February 2026, Greenpeace has identified and analysed 37 policies introduced around the world in response to the shock. Some help reduce short-term pain without locking countries further into fossil fuels, some deepen fossil fuel dependence, and others send mixed signals.

A few governments are taking measures that point in a better direction. In the Philippines, public offices moved to a four-day workweek, computers were ordered off during lunch breaks and air conditioning was limited to 24°C, with the stated goal of cutting government energy use by one fifth. Pakistan combined school closures and work-from-home orders with an existing solar boom linked to an estimated US$ 6.3 billion in avoided fossil fuel imports in 2026 at current prices. Vietnam also leaned on work-from-home measures, while its existing solar buildout is estimated to save hundreds of millions of dollars in avoided coal and gas imports this year. In Egypt, the government says it is fast-tracking renewable projects, including the Abydos 2 solar plant and 2.5 GW of new grid-integrated renewable capacity, to reduce costly energy imports and bring down the state's fuel bill.

March 2026: Greenpeace Poland activists displayed posters in central Warsaw featuring images of Presidents Trump and Putin, along with the message: "Oil and gas equal war, suffering, high prices, chaos, and danger."

Other governments focused on conservation rather than more fossil supply. The IEA is currently tracking these measures globally. Thailand told civil servants to use stairs instead of elevators, reduce air conditioning and wear short-sleeved shirts instead of suits. Denmark's energy minister urged people to cut back energy use and drive less. At the political level, European Council President António Costa framed the crisis as an argument for accelerating home-grown energy production and the energy transition. In the UK, Business Secretary Peter Kyle said offshore wind and solar should be accelerated to reduce reliance on oil and gas from politically unstable regions.

Why fossil fuel lock-in makes the crisis worse

Too many governments are still responding with policies that keep the fossil fuel system alive. These measures may offer short-term political relief, but they deepen long-term vulnerability.

South Korea imposed a fuel price cap, while also lifting the national cap on coal-fired power generation and considered restarting Russian crude and naphtha imports. Japan capped pump prices and released crude from stockpiles, while Malaysia increased petrol subsidy spending to about US$ 510 million to hold down fuel prices. Brazil cut the federal diesel tax to zero.

This is the contradiction at the heart of many current responses. Governments say they want to shield people from the energy shock, but many are choosing policies that prolong the dependence that caused the shock in the first place.

That exposes a deeper injustice in fossil fuel-dominated systems: billionaires and big corporations profit while people pay the price with their lives, with more extreme weather and with higher bills. Every cent spent on war and fossil fuels is a cent stolen from a fair and green future, and public money should build a liveable planet rather than bankroll destruction.

March 2026: Greenpeace Australia Pacific activists have disrupted the Australian Domestic Gas Outlook conference in Sydney, dropping a 3-metre-long banner in the main foyer outside the conference room saying, 'Gas Execs Profit, We Pay The Price'.

Renewable energy is the real solution

Some countries may feel they cannot afford renewable energy in the midst of the current crisis. But that is precisely why clean energy is the solution: it involves lower upfront costs, fewer massive infrastructure investments, and can be deployed much faster.

The alternative is already growing fast. According to IRENA's Renewable Capacity Statistics 2025, renewables accounted for 92.5% of all new global power additions in 2024, with 585 GW added in a single year. Solar alone added a record 452 GW. In other words, renewables are already the bulk of new power capacity being installed worldwide.

In the context of a full-scale war, Greenpeace Central Eastern Europe and Ukrainian specialists in the field of solar energy Atmosfera initiated the Solar Power Plant Installer course, which aims to give women the opportunity to learn a new profession and increase the representation of women in the green sector.

That matters because renewable energy offers more than lower emissions. Decentralised systems based on wind and solar are harder to sabotage, less vulnerable to blockades and shipping disruptions, and better able to keep homes, schools and hospitals running during crises. Real security does not come from pouring more money into militarisation and fossil dependence, but from investing in systems that actually protect people, including clean energy, healthcare and public services.

We need policies that cut fossil fuel dependence and expand renewable-centred energy systems, because that is how communities become more resilient, economies become more stable and the risks of future conflicts are reduced. The best cost-of-living policy for people and the planet is a safe, stable, cost-effective and clean energy system.

Camilo Sánchez is Communications Manager at Greenpeace International, based in Germany. John Noël is Senior Portfolio Manager at Greenpeace International, based in the United States.