Hello from The National and welcome to the Energy This Week newsletter, our expert analysis on oil and gas, renewables and clean energy.

Fallout from Iran-Israel war: damage, disruption and diplomacy

• US President Donald Trump said he had dropped efforts on removing sanctions on Iran after “a statement of anger, hatred, and disgust” from Iran’s supreme leader Ayatollah Ali Khamenei, and that he had spared Mr Khamenei a “very ugly and ignominious death”. Saying, “if they can show us they’re not going to do any more harm, I would take the sanctions off”, Mr Trump also suggested that several other unspecified countries were ready to join the Abraham Accords to normalise relations with Israel, “because Iran was the primary problem”.
• Israel’s economic losses from the war with Iran are estimated at $6 billion, including the damage to the Bazan oil refinery in Haifa, and the temporary shut-down of two major offshore gasfields. After the 12 days of missile and drone exchanges between Israel and Iran, followed by the US attacks on three of Iran’s main nuclear sites, the energy industry has returned to normal. But has it learnt the right lessons from this conflict?
• Radiation levels around the Gulf region are normal, after the US and Israeli attacks against Iran’s three main nuclear sites. The Bushehr nuclear power plant, which could have seen what the International Atomic Energy Agency chief described as “the worst nuclear safety scenario”, was not attacked.
• The Iran-Israel conflict unsurprisingly dominated discussions at the annual Petro Diplomacy Conference in Washington, hosted by the Arab Gulf States Institute. Visitors pointed to the lack of clarity about US intentions, the caution of Iran to return to any negotiations, but also the lack of real disruption to energy supplies. Former US energy envoy Amos Hochstein has called for deals to be activated to send gas from Egypt to Lebanon, and electricity from Jordan to Lebanon, using the routes through Syria now available after US sanctions were lifted. Both Syria and Lebanon badly need energy for economic recovery and reconstruction.
• UAE road fuel prices are up about 5 per cent in July, following a volatile month for oil prices mainly due to the conflict. But petrol and diesel prices are still close to their lowest levels since early 2022. The International Monetary Fund has revised forecasts for Saudi economic growth upwards as Opec+ production cuts are unwound.

GPS jamming hits shipping

• War has caused shipping, aviation, insurance and other companies operating in the Middle East to think again about supply chains, risks and disruptions.
• Jamming of GPS by military adversaries can confuse ship navigation in the crowded waters of the Gulf, causing users to look at navigational options that don’t rely on satellites.
• The Sun has entered the most active part of its 11-year cycle, in which flares of charged particles can affect satellites, radio systems, electronics and power grids on Earth, potentially causing power cuts.

Adnoc expands drilling, seeks China ties

• Adnoc Drilling has been awarded a contract by sister unit Adnoc Onshore worth up to $800 million for hydraulic fracturing. The technique is important for producing from unconventional reservoirs, under development in Abu Dhabi.
• Meeting China’s finance minster in Beijing on Thursday, the UAE’s Minister for Industry and Advanced Technology, and chief executive of Adnoc, Dr Sultan Al Jaber, discussed co-operation in liquefied natural gas, petrochemicals, strategic shipping and renewable energy.
• The UK’s trade deal with the US has come into force, but the UK’s largest bioethanol plant, Hull-based Vivergo Fuels, believes it will have to close down as it cannot compete with subsidised American fuel.

Sharjah takes solar stride

• Sharjah has begun operations at its largest solar plant. The 60 megawatt site will supply the needs of Sharjah National Oil Company, with any excess sent to the emirate’s grid.
• Abu Dhabi-based district cooling company Tabreed will buy PAL Cooling for $1.03 billion. PAL has eight long-term concessions covering parts of Abu Dhabi and Reem islands.
• Joby Aviation hopes to offer its electric air-taxi service in Dubai from early next, initially connecting vertiports at the airport, Downtown, the Marina and the Palm Jumeirah.

Brazil climate talks: implementation over pledges

• Brazil is calling for climate talks to focus on implementation over pledges, as it prepares to host the Cop30 conference in the Amazonian city of Belem in November. Many country signatories of the Paris Agreement have still not submitted their required climate action plans. Australia and Turkey are the leading competitors to host Cop31 next year.
• The UK’s energy ministry has decided to drop an ambitious £25 billion ($33 billion) scheme to transmit renewable electricity from Morocco to Britain through a nearly 4,000km undersea cable. The government decided the Xlinks scheme was too risky and did not align with its plans for domestic renewable generation.
• Rare earth supply chains are under pressure from Chinese restrictive trade measures. These metals are crucial constituents of smartphones, electric car motors and jet engines. Mining new types of deposits, building refining and processing capacity outside China, and recycling more, are key steps in making the clean energy economy more resilient.

Boosting biodiversity, dealing with extreme climate in the UAE

• Dubai’s 20-minute city concept, bringing residents’ needs together with public transport can cut congestion, pollution and energy use. The upgraded Ras Al Khor Wildlife Sanctuary, at a cost of Dh650 million ($177 million) should boost biodiversity and carbon absorption.
• Sheikha Shamma bint Sultan has opened the Climate Tribe Hub in Abu Dhabi as a place for climate storytelling and sustainable design. Sheikh Shamma became aware of environmental issues during a humanitarian visit to drought-stricken Mogadishu.
• And the UAE’s turtle population has increased 30 per cent over a decade ago, with bans on single-use plastic products helping improve the marine environment, but some turtles are still being injured or dying from plastic ingestion.
• An ADQ joint venture with France’s Limagrain will focus on developing vegetable seeds suited for a changing climate, especially in coping with salinity, drought and extreme heat.
• Hail has fallen on the Al Ain area, as the UAE is expected to see hotter, wetter and more humid conditions with global warming.
• And Europe is facing its first heatwave of the summer, with Spain breaking its heat record from 1965, the temperature reaching 46°C, and Turkey hit by wildfires.