The eyes of the world are currently fixed on events in the Middle East, with the Iran war sending tremors through the world economy and sparking concern that it could trigger a global economic crisis.
Energy lies at the centre of these pressures — with disruptions to oil and gas supply, particularly through the strategically critical Strait of Hormuz, sending prices soaring, fuelling inflation, and exposing the fragility of a global economy still heavily dependent on secure and affordable hydrocarbons.
Many countries throughout Asia are currently taking steps to mitigate the impact of possible energy shortages should the conflict persist. Sri Lanka has declared every Wednesday a holiday for public institutions to conserve fuel, Bangladesh has introduced planned blackouts, and other countries are encouraging work from home to reduce fuel use. Thailand’s government has even asked workers to ditch suits in favour of short-sleeved shirts in order to reduce reliance on air-conditioning.
Like the war in Ukraine before it, this conflict has exposed the world’s reliance on oil and gas from geopolitically sensitive regions, where supply security can be quickly undermined. It raises serious questions for countries doubling down on fossil fuels, and reinforces the importance of diversifying energy systems, accelerating the deployment of low-carbon alternatives, and strengthening domestic energy resilience.
Hydrogen offers a critical pathway to a clean and more resilient energy future. Crucially, its value lies not only in enabling decarbonisation, but in offering countries the opportunity to develop domestic sources of clean energy, reducing exposure to volatile global fuel markets.
At the same time, the potential for trade is a major driver behind many low-emissions hydrogen projects. The International Energy Agency (IEA) notes that almost 45% of hydrogen from announced low-emissions production projects is intended for export.1 And the Middle East has ambitious plans to lead the world in this area, utilising its abundant solar and wind resources, existing energy infrastructure, and strategic location between Europe and Asia. Countries in the region have started to focus on green hydrogen development as part of national strategies to diversify their economies and reduce dependence on fossil fuel exports. Numerous projects are underway, with Saudi Arabia’s state-owned NEOM project a stand-out example. It is expected to produce 600 tpd of clean hydrogen by the end of this year.
This issue of Global Hydrogen Review includes a report from Haynes Boone examining how the MENA region stands ready to become a key player in the green hydrogen sector (p. 4). The article also acknowledges a number of critical challenges facing the region’s burgeoning hydrogen market – and it is important to note that it was written before the onset of the current conflict in Iran. These challenges have only since been intensified, and the same global dynamics now impacting oil and gas markets also raise important questions about whether international hydrogen trade risks replicating the same geopolitical vulnerabilities.
Nevertheless, the current conflict strengthens the case for hydrogen – not just as a traded commodity, but as a strategic asset. It offers countries a pathway to build more diversified and resilient energy systems at home – increasing energy security and accelerating the transition to clean energy.
- ‘Global Hydrogen Review 2025’, International Energy Agency (IEA), (2025).
