NEWSLETTER: Wartime oil diet boosts renewables

Shipping constraints tied to the U.S.-Iran war are pushing consumers to use less fuel, and the energy mix is shifting faster than many expected. A Reuters newsletter cites analysis showing China’s carbon emissions fell 1% year-on-year in Q2 2026, with a 9% drop in oil consumption driven by consumers moving to electric vehicles ahead of schedule. The International Energy Agency expects renewables to become the top electricity source for the first time this year, while projecting coal output to dip 0.7% in 2027 and gas generation to rise 1.5%. The piece also notes research from the Dallas Fed suggesting the U.S. is less exposed than in the 1970s.