WASHINGTON: The war in the Middle East has not only roiled global oil and gas markets but is now severely disrupting supply chains for renewable energy infrastructure, exposing vulnerabilities that experts say blur the line between fossil fuels and clean energy.
“You can’t really separate the two anymore,” Jon Powers, president of solar and battery storage developer CleanCapital, told Platts, part of S&P Global Energy. “It has been an oil- and gas-centric conversation, but you marry that to the demand … that’s been growing and it’s sort of hitting everywhere.”
The conflict has effectively closed the Strait of Hormuz, a vital shipping chokepoint connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. The blockade has halted shipments of oil, gas and related materials, as well as critical feedstocks for renewables and battery storage, including aluminum, copper, helium and sulfuric acid.
Industry analysts say the impact on renewable energy manufacturing has been uneven.
‘Aluminum supply crisis’
Aluminum, used in solar panels, wind turbines and battery storage systems, is in acute jeopardy. The Gulf Cooperation Council, a six-nation bloc in the Persian Gulf, accounted for 8.3% of global primary aluminum supply in 2025, according to the International Aluminium Institute.
“We are teetering on an aluminum supply crisis,” Joe Quinn, executive director of the SAFE Center for Strategic Industrial Materials in Washington, told Platts.
“The sudden disruptions in the Middle East could remove up to 5 million [metric] tons of aluminum from the global market.” By comparison, Quinn noted, the U.S. produced less than 700,000 metric tons of primary aluminum in 2025.
Iranian missile strikes on March 28 caused extensive damage to Emirates Global Aluminium’s Al-Taweelah smelter in Abu Dhabi, which processes 1.5 million metric tons annually, and Aluminium Bahrain’s 1.6-million-metric-ton-per-year smelter.
Emirates Global Aluminium said restarting its smelter could take up to 12 months. Aluminium Bahrain has not provided an operational update.
The London Metal Exchange price for aluminum, the global benchmark, reached a four-year high on April 13 and has risen 17.9% since bombings in the region began Feb. 28.
Higher aluminum prices are pressuring solar companies, including First Solar, the largest U.S. panel producer. Analysts at BNP Paribas said in an April 21 note that aluminum price hikes could increase the war’s total commodity cost headwind for First Solar to at least $150 million, or 3% of its 2026 revenue guidance. The company’s crystalline-silicon competitors face similar or greater headwinds, the analysts added.
U.S. tariffs including 50% tariffs on aluminum and copper under Section 232 of the Trade Act of 1974 — have contributed to supply chain disruptions and market volatility.
“In aluminum, we’ve now seen a sequence over the last couple of years that feeds into this cycle of volatility and uncertainty, both in terms of price and supply,” Harry Knott, senior business architect at Quoreka, a commodity trading and risk management software provider, told Platts.
But some companies are more insulated or could even benefit. Texas-based T1 Energy has replaced imported aluminum frames with American-made steel frames.
T1 Energy and photovoltaic manufacturer Qcells told Platts they do not expect their supply chains to be affected. Nextpower, which supplies U.S.-made steel frames, also has a joint venture in Saudi Arabia that could gain from increased solar demand in the Middle East.
“Nextpower Arabia … is poised to benefit from potential surcharged solar growth in Saudi Arabia as [a] result of Iran conflict and associated oil & gas price/supply concerns,” BNP Paribas analysts said.
Other materials at risk
Sulfuric acid, a byproduct of oil and gas refining and used to process copper, is also vulnerable. Copper is essential for renewable energy, particularly in electrical wiring. The Copper Development Association said a solar power system can contain 5.5 tons of copper per megawatt, and a 3-MW wind turbine may use up to 4.7 tons.
When you think about copper, that’s the actual goods that run the electricity in terms of renewable energy grids, batteries, data centers.
Helium, a byproduct of natural gas processing, has also been affected. State-owned QatarEnergy said helium production would drop 14% after strikes damaged its Ras Laffan Industrial City LNG facility.
Qatar produces about one-third of the world’s helium, second only to the U.S., according to the U.S. Geological Survey. Helium is used to make semiconductors, which are essential for solar, wind and battery storage systems.
Longer-term project impacts
Developers of solar and wind projects are racing to begin construction by July 4 to qualify for key tax credits. Rising construction costs could delay final investment decisions, with impacts felt years later.
Some analysts speculate the tax credits could be extended due to the war. CreditSights analysts said in an April 13 note that higher energy costs, potential Democratic gains in the House and clean energy investments in Republican states could lead to an extension of credits that Trump’s “One Big Beautiful Bill Act” eliminated.
The conflict may ultimately benefit solar energy. “Rising energy prices tied to Middle East disruptions are boosting solar economics, prompting initial upward revisions in global solar forecasts,” Jefferies analysts said in an April 1 note.
“The price of energy comes more or less out of the oil market, because so many non-oil products are priced de facto in competition with oil,” said David Victor, nonresident senior fellow at the Brookings Institution and professor at the University of California San Diego.
“So, when the price of oil goes up, the price of everything else looks more attractive.”
Editor’s note: This story is based on reporting by Platts, part of S&P Global Energy, and reflects market conditions and statements made as of the dates indicated. The conflict in the Middle East remains dynamic, and supply chain impacts continue to evolve. Readers should monitor official sources and commodity markets for the most current information.