Beyond the “Iran Shock”: The Case for Energy Autonomy

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A possible cautionary scenario?

Analysts predict enormous economic headwinds as the global energy market continues to weaken. Iran’s closure of the Strait of Hormuz has exposed the strategic limits of American power and the unique vulnerability of the global economy. According to The Economist, we are on the verge of a global economic disaster. Indeed, Iran’s tight grip over the Strait of Hormuz has positioned it as a global energy gatekeeper capable of metering one-fifth of the world’s energy market. What the current “Iran Shock” has revealed is that dependence on petrostates and economic chokepoints is an existential risk to global stability — and a direct challenge to nations such as Canada.

Over the past 20 years, China has come to dominate what it calls the “new energy” industry. China’s clean energy industries drove more than 90 percent of its investment growth in 2025, making these sectors larger than all but seven of the world’s economies. The country now manufactures 90 percent of the world’s solar panels, 60 percent of wind turbines and 75 percent of lithium-ion batteries, and installs more renewable capacity each year than the rest of the world combined.

In fact, China’s breakneck investments in clean energy are accelerating a nuclear renaissance that could help double global nuclear capacity over the next two decades, supporting surging electricity demand from artificial intelligence data centres and industrial electrification. This ongoing construction boom carries profound implications for the future of energy and the global balance of power. For nations investing in clean energy, the payoff is strategic resilience and technological leadership. For those sitting on the sidelines, the risk is economic and financial stasis.

Nuclear Power Stations. Source: Wikipedia