Beyond volatility: The next phase of US energy leadership

The war involving Iran has sent a familiar shockwave through global energy markets. Oil prices have climbed sharply amid fears of disruption in the Persian Gulf, while natural gas and liquified natural gas (LNG) prices in Europe and Asia have followed suit. Even without a direct supply interruption, the geopolitical risk premium has returned with force. 

For policymakers in Europe and Asia, the lesson is clear: Dependence on distant and politically volatile energy sources carries enduring risks. The response, increasingly, is a strategic pivot toward renewable energy and nuclear power — not only as climate solutions, but as instruments of energy security. 

In Europe, the transition away from Russian gas has already accelerated investment in renewables. The Iran crisis has reinforced this trajectory, prompting governments to double down on wind, solar and grid modernization. At the same time, nuclear energy is experiencing a quiet revival. France is expanding its reactor fleet, and countries that once planned to phase out nuclear power are reconsidering those decisions in light of new geopolitical realities. 

Japan, one of the world’s largest liquefied natural gas importers, has drawn similar conclusions. It is restarting nuclear reactors, investing in next-generation designs and scaling up renewable energy deployment. For Tokyo, diversification is not optional; it is essential. 

But there is another critical dimension to this story, one that Washington cannot afford to ignore. Even though China remains exposed to disruptions in Middle Eastern energy flows, it has spent the past decade systematically reducing its vulnerability through a massive buildout of renewable energy capacity.

Today, China leads the global energy transition. At the most recent COP30 climate conference in Brazil, China’s delegation was the center of attention on renewable energy. Its companies dominate global supply chains for solar panels, wind turbines and battery technologies. At home, China has reached new highs in renewable energy generation, installing record levels of solar and wind capacity while continuing to scale up grid infrastructure and storage. 

This is not just an environmental strategy; it is a geopolitical one. By investing early and aggressively, China has positioned itself as the primary supplier of clean energy technologies to the rest of the world. Countries seeking to reduce their dependence on fossil fuels are increasingly turning to Chinese equipment and financing to do so. 

For the U.S., this presents both a challenge and an opportunity. Much of the current discussion in Washington has focused on liquefied natural gas exports. The U.S. has emerged as the world’s leading liquefied natural gas supplier, providing critical support to European allies in the wake of Russia’s invasion of Ukraine. This role will remain important.

But gas alone cannot define the future of U.S. energy leadership. If Europe and Asia are moving toward a more diversified energy mix, one that includes renewables, nuclear power and advanced storage technologies, then the U.S. must position itself to lead across this entire spectrum. And if China is already dominating key segments of the renewable energy value chain, the U.S. response cannot be incremental. It must be strategic. 

That strategy begins with investment. Renewable energy capacity must continue to expand, supported by robust transmission infrastructure and next-generation grid technologies. At the same time, energy storage must become a central priority. Without large-scale storage, the full potential of wind and solar cannot be realized. 

Nuclear energy is equally critical. Advanced nuclear technologies, including small modular reactors, offer a pathway to reliable, low-carbon baseload power. They are also uniquely suited for export, providing allies with an alternative not only to fossil fuels, but to Chinese-built energy systems and one that the U.S. is uniquely positioned to provide.

Competing with China in the global energy transition will require deeper collaboration with allies and partners. No single country can match the scale and speed of China’s deployment alone. But through coordinated investment, shared standards, joint financing mechanisms and technology partnerships, the U.S. and its partners can build a credible and competitive alternative. 

Yet this opportunity comes at a moment of tension. The Trump administration has been skeptical toward renewable energy, favoring a more traditional focus on fossil fuel production and energy dominance. Although this approach has delivered short-term gains, it risks missing the broader strategic shift now underway globally. 

Energy dominance in the 21st century will not be defined solely by the ability to produce oil and gas. It will depend on leadership across a diverse set of technologies and on the ability to compete effectively with China in these domains. 

The Iran conflict has underscored the fragility of the current energy system. It has also highlighted the urgency of building a more resilient and diversified global energy architecture. 

For the U.S., the path forward is clear: Continue to lead in liquefied gas exports, but do not stop there. Invest aggressively in renewable energy and storage. Accelerate the development and deployment of advanced nuclear technologies. And work closely with allies and partners to build a competitive alternative to China’s growing dominance in clean energy. 

The future of energy leadership will belong not just to those who produce energy, but to those who shape the systems that power the global economy.  

Duncan Wood is a fellow at the Wilson Center and CEO of Hurst International Consulting.

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More Opinions - Energy and Environment News

Republicans fear succession of government shutdowns under Trump

Fetterman on Democrats’ redistricting win in Virginia: ‘We all lose at this ...

Supreme Court leak shakes institution’s secrecy  

Iowa Republican zeroes in on birth control access in heated Senate race

Spotlight shifts to Florida after Democrats win Virginia redistricting battle

The Memo: Can Trump realistically better Obama’s Iran deal?

Rep. Raskin: Kash Patel 'on the run now'

Finally, MAGA figured out who the real Donald Trump is 

Patel gets in shouting match with reporter as he defends job performance

Walz: ‘Next Democratic president better figure out a way to get universal ...

Cruz: Schumer will shut down government weeks before midterms

Trump pushes back on Wall Street Journal editorial labeling him ‘sucker’ on ...

Jeffries: Democrats working to ‘make sure’ Hegseth, Patel ‘are on their ...

Watchdog requests Patel’s calendar, security detail messages

DOJ walks back subpoenas in Brennan investigation: Report

Cuban says ‘no’ when asked if he wants Harris to run for president in 2028

Trump rips Carville over call for more states, Supreme Court justices

WHCA buzz reaches fever pitch as Trump set to attend for first time as president

The Hill Podcasts – Morning Report

© The Hill