Blog•Apr 3, 2026
How the Iran War Could Scramble the Climate Tech Capital Stack
The Iran‑Iran war’s closure of the Strait of Hormuz is choking oil exports, slashing revenues for Gulf sovereign wealth funds and oil‑backed venture arms. Those investors have been a major source of early‑stage climate‑tech capital, funding electric mobility, clean hydrogen, carbon capture and other emerging solutions. With billions of dollars at risk, firms such as Azolla Ventures warn of a slowdown in risk‑embracing venture dollars and pauses on pilot projects in the region. The disruption also threatens ambitious green‑hydrogen and carbon‑capture targets announced by Saudi Arabia and the UAE.
