Dozens of countries have lowered energy taxes or taken other policy steps in response to Iran war
- company International Energy Agency (IEA)
- location Asia
- location Europe
- location Iran
- location Ireland
- location Japan
- location Turkey
- person President Donald Trump
More than 100 countries have enacted policy changes to blunt rising energy costs tied to the Middle East conflict, according to a June 12 update from the International Energy Agency (IEA) [1]. The tally reached 113 nations alongside the European Commission, reflecting a broad scramble to shield consumers and economies from supply shocks [1]. The most common intervention was tax adjustment, adopted by 55 countries [1]. Turkey, for example, lowered its fuel tax on oil [1]. Public awareness campaigns urging energy conservation were launched in 40 countries, with Ireland and Japan encouraging savings and the Philippines declaring a national energy emergency [1]. Another 32 countries added or expanded fuel subsidies; Fiji introduced a diesel rebate for its main electricity provider, and Mozambique began subsidizing public transit [1]. A smaller group of 28 countries pursued structural policies aimed at long-term efficiency or reduced fossil fuel dependency, such as the Netherlands accelerating trade-ins of combustion-engine vehicles for electric models and replacing home gas boilers with heat pumps [1]. The policy wave follows a cascade of disruptions in the Middle East. The 2026 Iran war, which began on 28 February with US-Israeli airstrikes that killed Supreme Leader Ali Khamenei, triggered Iranian missile and drone attacks across the region and a blockade of the Strait of Hormuz [3][5]. The strait normally carries about 25% of the world's seaborne oil trade and 20% of its liquefied natural gas [5]. Its effective closure drove Brent crude above $100 per barrel for the first time in four years, peaking at $126, and produced the largest monthly oil-price jump on record in March 2026 [5]. The IEA, founded in 1974 after the 1973 oil crisis to coordinate responses to supply disruptions, tracked the resulting government measures [7]. Asia-Pacific nations accounted for the largest number of changes, with 29 countries enacting 124 policy adjustments [1]. Bangladesh implemented four types of measures: limiting air-conditioning temperatures, closing public and private universities, urging energy savings, and capping fuel purchases while promoting public transport [1]. Laos enacted nine distinct policy types, the most of any country, while Cambodia, India, Indonesia, the Philippines, and Vietnam each adopted eight [1]. In Europe, 30 countries and the European Commission together made 86 changes; Sweden halved public-transport pass prices, extended gas-tax reductions, accelerated electrification of public vehicles, and provided crisis support for farming, fishing, and electricity bills [1]. The United States did not adopt nationwide measures, though President Donald Trump floated suspending the federal gas tax, and Georgia, Indiana, Kentucky, and Utah offered state-level gas-tax relief [1].
macro-economyfiscal-policy
Background sources we checked (8)
- en.wikipedia.org ↗ Iran, officially the Islamic Republic of Iran, historically known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the northeast, Afghanistan to the east, Pakistan to…
- en.wikipedia.org ↗ Since 28 February 2026, the United States and Israel have been at war with Iran and its regional allies. Hostilities broke out after US–Israeli airstrikes killed several Iranian officials, including Supreme Leader Ali Khamenei. These attacks were launched amidst ongoing US–Iran n…
- en.wikipedia.org ↗ The Twelve-Day War was an armed conflict between Iran and Israel which lasted from 13 to 24 June 2025. It began when Israel bombed military and nuclear facilities in Iran in a surprise attack, assassinating prominent military leaders, nuclear scientists, and politicians, killing …
- en.wikipedia.org ↗ Shipping traffic through the Strait of Hormuz, a major maritime choke point for world energy trade, has been largely blocked by Iran since 28 February 2026, when the United States and Israel launched an air war against Iran. In retaliation, the Iranian Revolutionary Guard Corps (…
- en.wikipedia.org ↗ On 24 February 2022, Russia invaded Ukraine, starting the largest and deadliest war in Europe since World War II, in a major escalation of the existing war between the two countries that began when Russia attacked Ukraine in 2014. The fighting has caused hundreds of thousands of …
- en.wikipedia.org ↗ The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organization, established in 1974, that provides policy recommendations, analysis and data on the global energy sector. The 32 member countries and 13 association countries of the IEA represent 75…
- en.wikipedia.org ↗ The International Renewable Energy Agency (IRENA) is an intergovernmental organization mandated to facilitate cooperation, advance knowledge, and promote the adoption and sustainable use of renewable energy. It is the first international organization to focus exclusively on renew…
- en.wikipedia.org ↗ World energy supply and consumption refers to the global supply of energy resources and the consumption of the latter. The system of global energy supply consists of the development, refinement, and trade of energy. Energy supplies may exist in various forms such as raw resources…