• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

New

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

CommentaryNuclear Energy
Asia

Asia is turning to coal in the Iran crisis, but nuclear power will be the real endgame

By
Julius Cesar Trajano
Julius Cesar Trajano
Down Arrow Button Icon
By
Julius Cesar Trajano
Julius Cesar Trajano
Down Arrow Button Icon
April 24, 2026, 5:00 PM ET
Julius Cesar Trajano is Research Fellow at the Centre for Non-Traditional Security Studies, S Rajaratnam School of International Studies (RSIS), Nanyang Technological University (NTU), Singapore. He specialises in Southeast Asia’s clean energy transition and nuclear energy governance.
This photo taken on December 2, 2025 shows Tokyo Electric Power Company's Kashiwazaki-Kariwa Nuclear Power Plant Unit 6 in Kashiwazaki, Niigata Prefecture.
This photo taken on December 2, 2025 shows Tokyo Electric Power Company's Kashiwazaki-Kariwa Nuclear Power Plant Unit 6 in Kashiwazaki, Niigata Prefecture.Jiji Press—AFP via Getty Images
Add Fortune on Google for similar content.

The closed Strait of Hormuz has triggered a sharp energy shock across Asia. Last year, nearly 90% of the oil and gas transported through the strait was destined for the region. But with the waterway shut for nearly two months, Asian policymakers now have to urgently rethink their energy strategies.

The answer, for many countries, is coal. The Philippines, Japan, Thailand and South Korea, among others, have turned to coal as a stopgap measure to stabilize their power supply amid volatility in oil and natural gas markets. Coal exporters like Indonesia are also ramping up their stockpiles as the Middle East conflict triggers a price surge.

This looks like backsliding for a region that was already struggling to meet its emissions targets. But while coal gets today’s headlines, Asia’s energy future lies in nuclear power, the only fuel able to provide regular electricity.

The shift to coal is a short-term response to concerns about energy security. Asia is still deeply tied to fossil fuels, with power generation, transmission and financing built around coal, oil and gas. Any pivot from these fuels is going to be constrained by investment cycles and the time it takes to build alternatives.

But a spike in coal usage is unlikely to persist in the long-term. Governments know that any reliance on fossil fuels is a strategic vulnerability. Coal may be a readily available buffer for now, but the Iran war won’t derail the transition to cleaner energy. Over the long-term, the Iran war will reinforce, not reverse, the region’s shift to a more diversified energy mix. The conflict is underscoring the true reason governments want fewer fossil fuels: Not to reduce emissions, but to reduce exposure to a volatile energy market.

Nuclear, not (just) renewables

Renewable energy, like solar and wind, will continue to be popular options in Asia. But these energy sources, on their own, won’t be able to replace baseload fossil fuel generation.

Nuclear energy can. Energy policymakers and planners increasingly recognize that nuclear power offers a reliable, low-carbon, and domestically controlled energy source, at least compared to imported fossil fuels.

The closed Strait of Hormuz strengthens the case for nuclear as a hedge against a fossil fuel supply shock, reducing Asia’s exposure to an unstable Middle East.

That said, accelerating the use of clean energy, including nuclear, is not straightforward for governments, particularly in developing countries with limited institutional capacity, financing, and technical expertise. Clean energy is expensive (at least upfront), takes time to build, and poses regulatory and safety concerns—and so governments will need to have sustained political will to carry out their plans.

Governments must follow a multi-pronged strategy to carry out their clean energy plans. They must to strengthen cooperation with other governments, invest in modernizing their electrical grids, and create a stable policy framework that can attract long-term investment.

What will this look like in Southeast Asia? Expanding cross-border power trade through initiatives like the ASEAN Power Grid can allow nuclear and renewable energy stations to supply more than one country. Better financing mechanisms can also help lower the risk of large-scale energy projects.

When it comes to nuclear energy specifically, governments will need to establish an independent and well-resourced nuclear regulatory regime with the power to license, inspect, and enforce compliance in line with international standards. They also need to invest in training, working with countries with more experience with nuclear power.

This is key, as the region remains wary of nuclear power’s safety record. Public buy-in is essential for any government choosing to embrace nuclear power; officials must convince their citizens that nuclear power is a safe and necessary option for energy security, or risk losing public support and ending up with a policy reversal down the line (as happened in Germany).

While the Iran conflict has prompted a short-term reversion to fossil fuels, especially coal, it is unlikely to derail East Asia’s long-term clean energy transition. Instead, it underscores the urgency of building a more diversified and resilient energy mix, where nuclear power will end up playing a far more central role.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

Fortune Daily breaks the traditional barrier between audience and newsroom. The show transforms Fortune’s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders. Watch here.
About the Author
By Julius Cesar Trajano
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Commentary

bessent
CommentaryU.S. Department of the Treasury
Bessent’s Yen gamble is a warning sign — buckle up
By Steve H. Hanke and Roger KopplAugust 4, 2026
6 hours ago
d
CommentaryMedia
Why Paramount might win its case and still run out of time to acquire Warner Bros. Discovery
By Paul HardartAugust 4, 2026
8 hours ago
agent
CommentaryAI agents
Your AI agent can be a teammate. But it still needs a boss
By Keith Ferrazzi and Wendy SmithAugust 4, 2026
10 hours ago
dan
Commentarydisruption
How AI turned your best work into the bare minimum
By Dan SchawbelAugust 4, 2026
10 hours ago
owen
CommentaryLeadership
Your AI strategy isn’t failing because of bad design. It’s because your team doesn’t believe in you
By Owen FitzpatrickAugust 4, 2026
11 hours ago
The AI race isn’t about models, it’s about infrastructure—and the U.S. is still far ahead
CommentarySemiconductors
The AI race isn’t about models, it’s about infrastructure—and the U.S. is still far ahead
By Alex CapriAugust 4, 2026
19 hours ago

Most Popular

How Zohran Mamdani's pied-à-terre tax exposed an epidemic of 'ghost cars' instead
Personal Finance
How Zohran Mamdani's pied-à-terre tax exposed an epidemic of 'ghost cars' instead
By Catherina GioinoAugust 4, 2026
16 hours ago
Bars, bowling alleys, and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
North America
Bars, bowling alleys, and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
By Catherina GioinoAugust 2, 2026
3 days ago
Ray Dalio on the AI bubble nearing 1929, 2000 levels and the lesson people always forget: 'Wealth is not the same as money'
Investing
Ray Dalio on the AI bubble nearing 1929, 2000 levels and the lesson people always forget: 'Wealth is not the same as money'
By Nick LichtenbergAugust 4, 2026
16 hours ago
Wall Street bulls are starting to admit the earnings bubble is real—and the 60/40 portfolio may be the first casualty
Investing
Wall Street bulls are starting to admit the earnings bubble is real—and the 60/40 portfolio may be the first casualty
By Nick LichtenbergAugust 3, 2026
1 day ago
Electric air taxis are finally ready for takeoff
Magazine
Electric air taxis are finally ready for takeoff
By Alexei OreskovicAugust 3, 2026
2 days ago
The Iran war already has a winner: The world’s largest shipbroker notching record earnings from the 'exceptional volatility' in the Strait of Hormuz
Energy
The Iran war already has a winner: The world’s largest shipbroker notching record earnings from the 'exceptional volatility' in the Strait of Hormuz
By Sasha RogelbergAugust 3, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.