Industry
When the war involving Iran began on 28 February 2026, one of the world’s most important energy chokepoints quickly became a focal point of global concern: the Strait of Hormuz. Roughly 20% of the world’s traded oil passes through the narrow waterway during peacetime, making it one of the most strategically important shipping routes in global energy markets.
With the strait effectively closed during the ongoing conflict, the economic ripple effects have been felt far beyond the Middle East. Across the EU, fuel prices rose by around 13.5% in the weeks following the start of the military operation, with diesel drivers hit particularly hard. Diesel prices have climbed around 19.1%, compared with 10.6% for petrol vehicles, highlighting how supply disruptions quickly translate into costs for businesses and consumers.
Energy markets have felt similar pressure. Analysis by consultancy Cornwall Insight suggests household gas and electricity bills in Great Britain could rise by more than £330 per year, with the typical annual bill expected to approach £1,972 from July under the government’s energy price cap. In short, a regional conflict has once again exposed how deeply modern economies remain tied to fossil fuel supply chains.
While governments work to stabilise markets, reopen shipping routes, and secure alternative fuel supplies, businesses and households cannot simply sit and wait. So the question becomes: where can batteries realistically help?
Electric vehicles: the most immediate impact
Transport is one of the sectors where batteries can deliver the most immediate benefit, reducing our dependence and demand for oil, with the transportation sector currently accounting for roughly 37% of global CO₂ emissions, with demand for passenger transport expected to nearly triple by 2050. Recent data from the European Automobile Manufacturers’ Association (ACEA) suggests the current fuel crisis may already be accelerating EV adoption. Battery-electric vehicle registrations in the EU rose by 48.9% in March compared with the same month last year, marking one of the strongest months on record for EV sales.
For consumers, the appeal is simple: electricity prices may fluctuate, but they are far less exposed to geopolitical supply shocks than oil shipped halfway around the world.
As battery costs continue to fall and charging infrastructure expands, EVs increasingly represent not just a climate solution but a form of energy security, insulating drivers from the volatility of global oil markets.
Large scale grid storage
Transport is only part of the story. Batteries also play a growing role in stabilising electricity systems, particularly as renewable generation expands.
In Great Britain, 2025 was a record year for wind and solar generation, with renewables also achieving a record share of 52.5% of total electricity generation across the UK. While this reduces reliance on fossil fuels, it also introduces variability. Wind does not always blow, and solar generation disappears overnight. In addition, grid transmission constraints mean that renewable energy cannot always be transported or used where it is generated, or it may be curtailed due to system balancing requirements. As a result, some of this clean electricity is effectively wasted rather than fully utilised, meaning the system is not maximising the available renewable capacity.
This is where battery energy storage systems (BESS) come in.
Grid-scale batteries can store surplus electricity when renewable generation is high and release it during periods of peak demand. In effect, they allow electricity systems to operate with far less reliance on gas-fired power plants, which are often used to balance supply and demand. During periods of geopolitical tension, this flexibility becomes even more valuable. Every megawatt-hour of electricity supplied from stored renewable power is energy that does not have to be generated using imported fossil fuels.
Battery powered planes?
If you have a summer holiday coming up, you might be worried following a recent warning by the head of the International Energy Agency (IEA) that Europe “maybe has six weeks of jet fuel left” with airlines including KLM, Lufthansa, and Air Canada already cancelling flights. Aviation is a perfect example of how not every sector can benefit from batteries in the same way.
The aviation sector accounted for roughly 2.5% of global CO₂ emissions in 2023, yet aircraft remain heavily dependent on liquid fuels. The core issue is energy density. Jet fuel stores far more energy per unit of weight than current batteries, which makes it much better suited to aviation. Aircraft have to carry all their energy with them while also staying in the air, so weight matters a lot. Unlike fuel, which is burned and gets lighter during flight, batteries stay the same weight the whole time. That makes fully electric large aircraft very difficult with today’s technology.
Electric aircraft do exist today, but mostly in niche roles such as pilot training or specialised platforms. For commercial aviation, the more likely short-term solution lies in sustainable aviation fuels (SAF) produced from waste oils and fats, which can be used in existing aircraft without major redesigns.
In other words, while batteries may reshape many parts of the energy system, aviation will probably remain dependent on liquid fuels for some time.
Homes as small-scale energy producers
Perhaps the most unexpected area where batteries are gaining traction is residential energy. Across Europe, rising electricity prices and geopolitical uncertainty are pushing households to invest in rooftop solar panels paired with home battery systems. These setups allow homeowners to generate electricity during the day, store excess power, and use it later in the evening when demand peaks.
Energy supplier Octopus Energy has reported a 50% increase in solar panel sales and a 30% rise in heat pump sales in recent months, and to meet this demand, UK retailers such as Lidl are also preparing to sell smaller plug-in solar panels designed for balconies or small rooftops. These systems, expected to cost around £400, could allow households to reduce energy bills by £70–£110 per year, paying for themselves in roughly four years.
Across Europe the trend is even more pronounced. German energy firm Enpal has reported surging demand for rooftop solar systems, while solar equipment distributor Solarhandel24 has seen net sales more than triple year-on-year as households rush to cut energy costs.
Combined with batteries, these systems effectively turn homes into small energy hubs, capable of generating and storing their own power.
A partial solution to a global problem
Batteries aren’t a magic wand, but they can reduce the impact of disruptions linked to geopolitical instability and volatile global energy markets. Electric vehicles cut dependence on imported oil. Grid-scale batteries help renewables displace fossil fuels in electricity generation. And home energy storage gives households more control over when and how they use their own power.
None of these technologies can solve the energy challenge on their own. But together they point to a broader shift: towards an energy system that is more flexible, more localised, and less exposed to geopolitical chokepoints, and ultimately more resilient in an uncertain world.
