Energy Market Risks of Israel-Hamas War Are Growing - Barron's
Energy Market Risks of Israel-Hamas War Are Growing - Barrons
The Energy Risks of Israel’s New War Are Large and Growing
Oct 16, 2023, 5:04 pm EDT
The state of Israel and the terrorist group Hamas are engaged in an existential conflict, each threatening the survival of the other, as well as the survival of civilians, both Palestinian and Israeli, caught in-between. The conflict could widen into a regional or even global crisis. For energy markets and the global economy, the risks are considerable and could swerve or accelerate in response to multiple variables. Structurally, the global economy is in a moment of flux, with persistent inflationary pressure, lack of fiscal space for many indebted economies, competitive industrial policy in renewables that may detract from decarbonization incentives in the developing world, lack of clarity in the growth and direction of China’s economy, and an on-going war in Ukraine.
Related Knowledge Center: ENERGY BASICS: nuclear
Nuclear energy provides almost 20 percent of the U.S. electricity supply. Advocates have called for an expanded role for nuclear as an emissions-free fuel source. But the economics of building new reactors are daunting. In addition, lingering safety concerns are an institutionalized part of the calculation of nuclear regulation, and highly radioactive nuclear waste remains a can that public officials have been inclined to kick down the road. The Energy Information Administration projects a sharp decline in nuclear power generation over the next decade, as new nuclear plants — two are planned — are more than offset by anticipated retirements of several operating reactors.