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The largest energy crisis in modern history is only beginning

semafor.com·May 5, 2026

The world is experiencing the largest energy crisis in modern history, primarily driven by the closure of the Strait of Hormuz, which has severely disrupted oil supply and is expected to have significant economic repercussions globally. This crisis highlights the urgent need for energy sovereignty and a shift towards renewable energy sources as countries reassess their reliance on fossil fuels and the vulnerabilities of their energy supply chains.

The current energy crisis, exacerbated by the closure of the Strait of Hormuz, underscores the urgent need for countries to focus on energy sovereignty by investing in domestic energy production, such as renewables, nuclear, and geothermal. This shift is crucial for reducing dependency on vulnerable chokepoints and achieving long-term resilience. Policymakers and investors should prioritize building energy systems relying on local resources to mitigate geopolitical risks and enhance energy security.

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