SC Clean Energy Community

Section 1
The Global Energy Shock Driving Utility Costs

Energy markets in early 2026 have entered a period of extreme volatility.

Recent geopolitical conflict has disrupted energy shipping routes, particularly the Strait of Hormuz, through which roughly 20% of global oil shipments normally pass.

As a result:

• Oil markets surged above $100 per barrel briefly
• Energy supply chains experienced shipping delays
• Global inflation expectations increased

Even after short-term corrections, crude oil remains roughly 25–35% above pre-conflict levels.

Energy economists call this a “geopolitical risk premium.”

This premium is effectively embedded into electricity generation costs.