Greenpeace director warns of 'fossilflation' as US-Iran conflict exposes global energy fragility
The executive director of Greenpeace International contends that the ongoing hostilities between the United States and Iran have triggered a structural economic vulnerability, urging a rapid transition to decentralised renewable energy to secure household budgets.
An opinion piece published by Al Jazeera on 14 July 2026 argues that the ongoing conflict between the United States and Iran has exposed the structural economic vulnerability caused by global dependence on fossil fuels. The author, identified as the executive director of Greenpeace International, contends that the war has triggered "fossilflation," a term used to describe the inflationary pressure on fuel costs, household expenses, and broader economic indicators resulting from the global economic system’s reliance on fossil fuels during geopolitical conflict.
The article cites warnings from the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF), the World Bank, and the World Food Programme (WFP) regarding rising inflation, weaker growth, and increased food insecurity. The WFP has estimated that 45 million people could be pushed into acute hunger due to higher oil, gas, and fertiliser prices. Additionally, the OECD has reported that governments in at least 46 countries have introduced emergency measures to shield households and businesses from rising fuel costs.
According to the piece, the closure of the Strait of Hormuz has driven up fuel costs and inflation across Asia, Africa, Latin America, Europe, North America, and Australia. The author argues that the more fossil fuel-dependent an economy is, the more exposed it is to disruptions far beyond its borders, affecting transport costs, electricity bills, and the price of everyday goods.
The article claims that major oil and gas companies earned over $30 million an hour in windfall profits during the first month of the war, based on analysis of data from Rystad Energy. It asserts that the fossil fuel industry exploits conflict dynamics to generate profits and subsequently argues for more drilling, subsidies, and fewer environmental protections, creating a cycle that leaves societies exposed to repeated economic shocks.
The piece advocates for a transition to decentralised renewable energy as a means of achieving economic security and resilience. It argues that locally generated power, such as rooftop solar and batteries, cannot be disrupted by geopolitical conflict, blockades, or sanctions, thereby insulating countries from future fossil fuel shocks and reducing exposure to volatile fuel markets.
