Inside Politics with Hugh Linehan How the Iran war is impacting the world's economies
Mar 11, 2026
Pat Leahy, Political Editor at The Irish Times, gives rapid analysis of European energy politics. Denis Staunton, Beijing correspondent, explains China’s energy ties and strategic calculations. They discuss how the Iran war is reshaping oil and gas markets, Europe’s political exposure and rearmament dilemmas, China’s long‑term planning, and migration risks from a collapsing Iran.
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China Wants Stability Not Open Conflict
- China prefers the Iran conflict to end quickly because it values stable energy supplies and regional economic ties.
- Denis Staunton notes China gets notable oil from Iran but more from Saudi Arabia, and it seeks neutral partners rather than formal allies.
Energy Shocks Could Boost Chinese Renewables
- Geopolitical turmoil can accelerate demand for renewables, benefiting China's solar and wind industries.
- Denis points out China manufactures most solar panels and turbines cheaply, so energy shocks can boost its exports.
Europe Faces Bigger Economic Risk From Gulf War
- Europe is more exposed economically to Gulf instability due to weaker growth and energy dependence.
- Pat Leahy warns higher energy prices risk renewed inflation and political pain for incumbent European governments facing elections.