Key insights
- NuScale shares rose 7% amid increased focus on nuclear energy due to geopolitical tensions and the clean energy transition. The Iran war is accelerating the shift to renewables as countries seek energy security. Increased demand for alternative energy sources, including nuclear, may positively influence related US equities.
Investing.com -- NuScale Power (NYSE: SMR) shares jumped 7% Thursday as geopolitical tensions drive renewed focus on nuclear energy as part of the clean energy transition.
The stock gained following comments from U.N. climate secretary Simon Stiell, who said the Iran war is "supercharging" the global shift to renewable energy as countries seek to reduce exposure to volatile oil and gas markets.
Chinese President Xi Jinping called this month to accelerate construction of a new energy system to safeguard energy security, emphasizing hydropower development and the expansion of nuclear power, according to a Reuters report.
The U.S.-Israeli war with Iran has disrupted oil and gas supplies, prompting some countries to ration fuel while others have implemented subsidies and tax cuts to shield consumers from rising prices.
Demand for alternative energy sources has surged across multiple regions. Rooftop solar systems in Europe have seen increased demand, while countries including Pakistan reported a jump in electric vehicle sales.
"Renewables offer safer, cheaper, cleaner energy that can't be held captive by narrow shipping straits, or global conflicts," Stiell said at a meeting of government officials at the International Energy Agency in Paris.
Turkey's Climate Minister Murat Kurum said fossil fuel dependency now tops the global political agenda. "The best way to protect citizens from the violent convulsions of global energy markets is to accelerate the clean-energy transition," he said in a statement.
Around 60 governments including Brazil, Germany, Canada and Nigeria met in Colombia this week for a summit to discuss how to phase out fossil fuels.