The Second Iran War illustrates the structural weakness of the global oil market – and the urgent need to  develop credible alternatives for both the world economy and Israel. The rise in oil prices in recent days is not  a one-off event, but part of a recurring pattern that has become especially common since the 1970s, after the  Yom Kippur War and the rise of the ayatollah regime in Iran, later during the Gulf Wars and the subprime  crisis, and more recently following the Russia-Ukraine war and the current confrontations in the Middle East.  These events have repeatedly demonstrated that dependence on oil is effectively a bet on the stability of  unstable states, as most of the world’s oil reserves are concentrated in non-democratic countries with long  histories of conflict, violence, and authoritarian rule. 

According to data on the world’s proven oil reserves, seven of the nine countries with the largest reserves are  currently classified as “Not Free” by Freedom House, including Venezuela, Saudi Arabia, Iran, Iraq, the  United Arab Emirates, Kuwait, and Russia. Together, these countries hold roughly 69 percent of the world’s  proven oil reserves. In other words, a substantial share of the energy resources on which the global economy  depends remains in the hands of autocratic regimes or within fragile political environments. 

The enormous importance of oil in the global energy system, combined with the political........

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