David M. Hart
The blockage of the Strait of Hormuz has thrown many nations dependent on Middle East oil and liquefied natural gas (LNG) into crisis. Beyond immediate measures to reduce energy consumption, the Iran war is now causing these countries to accelerate longer-term plans to build out solar and wind power, install batteries to balance their grids, and expand the role of electric vehicles (EVs).
An electric vehicle from Chinese company NAT is on display during the International Auto Show, in Pasay City, the Philippines, on April 11, 2026. Daniel Ceng/Anadolu/Getty Images
China is the clear winner. The country dominates all three industries and was already promoting them aggressively in export markets before the war. But this major advantage is only part of the postwar story. Beijing is also winning in other manufacturing sectors and electrical infrastructure writ large, and it is positioning itself to win the next generation of energy technologies. China’s progress may be good for the global climate, but as each day of hostilities passes and energy demands grow, it deepens the United States’ long-run geoeconomic challenge.
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