The End of the Middle East’s Monopoly on the Oil Market: Lessons from the 12-Day War between Iran and Israel

According to an exclusive report by Energy Press, many analysts predicted that the short-term 12-day war between Iran and the Zionist regime would disrupt the balance of supply and demand and significantly increase prices. However, the reality was that this conflict failed to disrupt the oil market and showed that the Middle East is no longer the only major player and price-determiner in the global oil market.
In an exclusive interview with Hossein Mirafazli, an energy expert, we examined the roots of this reality and the future of the oil market. Mirafazli believes that during this historical transition period, the share of renewable energies, especially solar, has increased significantly and, for this reason, the energy market’s dependence on oil is decreasing.
He explains: “During the recent 12-day war and the Zionist regime’s aggression against Iran, the balance of supply and demand in the oil market was not disrupted. Iranian and Russian oil exports continued without interruption and we did not have a decrease in supply. On the other hand, demand also continued its natural trend. Only if the Strait of Hormuz were closed and oil supply decreased, prices could reach around $150. But since this did not happen, oil prices stabilized after a few days.”
The most important point that Mirafazli points out is the rapid growth of renewable energies. According to him, “The share of solar energy has grown at an unprecedented rate over the past five years, and now this share has reached about 25-30 percent of global electricity production. It is expected that this trend will continue and within the next ten years the share of renewable energies, especially solar, will exceed 50 percent.”