President Donald Trump is seeking to expand U.S. fossil fuel production, a policy push that comes as global energy disruptions tied to the conflict in Iran and shifting supply dynamics have prompted countries to reconsider their energy strategies. Some countries are considering increasing investment in renewable energy to reduce vulnerability to supply bottlenecks.

Twenty percent of the global natural gas supply is transported through the Strait of Hormuz, and the conflict in Iran has contributed to higher global inflation and interest rates, increasing the cost of capital for renewable energy investments. Japan, India, Bangladesh, the Philippines, South Korea, Thailand, and Taiwan have either increased or are considering increasing coal use in power generation due to disruptions in oil and gas supplies from the Middle East. Italy announced it will postpone the shutdown of its coal-fired power plants for 13 years, and Germany is considering reactivating some idled coal-fired power plants.

Global coal consumption increased by about 1.3 billion tons since 2020 to reach 8.8 billion tons, an increase largely driven by high energy demand in India and China. Coal's share of global energy supply rose from 23% in 2000 to 28% in 2023. A shift from coal to natural gas in power generation had contributed to decarbonization in recent decades, but supply disruptions have partially reversed that trend. Russia's invasion of Ukraine led Europe to stop purchasing Russian gas.

British Prime Minister Keir Starmer offered a different approach to energy policy. "If we took control of our energy and had homegrown renewables, we could stabilise your bills," Starmer said. Solar and wind power generation is largely domestic and not vulnerable to supply bottlenecks like the Strait of Hormuz. However, wind turbines and batteries require critical minerals that are primarily sourced from China, which has demonstrated willingness to leverage its dominance in critical minerals as a geopolitical tool. Europe and Asia are more dependent on energy imports than the U.S.

In recent years, coal accounted for about 9% of energy demand in the U.S., slightly less than renewable energy. In 2000, renewable energy sources, largely biomass, accounted for just over 4% of U.S. energy consumption, while coal accounted for 23%. The price of gasoline is higher than in the winter of 1977 after adjusting for inflation, though the U.S. economy is much less reliant on energy than it was in the 1970s.