The Human Consciousness Now...Our World in the Midst of Becoming...to What? Observe, contemplate Now.
UNITED NATIONS, Jul 20 2026 (IPS) - Throughout July 2026, various United Nations (UN) bodies and global experts have underscored the need for increased comprehensive artificial intelligence (AI) governance. Although AI yields significant potential gains for global development, persistent structural barriers continue to impede equitable access and deepen the digital divide.
From July 6 to 7, the UN convened the first session of the Global Dialogue on AI Governance, featuring a presentation of the inaugural report of the Independent International Scientific Panel on AI. The conference included testimonies from global experts and leaders who emphasized the rapidly accelerating nature of AI, warning that without adequate guardrails and transparency measures, entire communities risk falling behind.
“Artificial intelligence is advancing at runaway speed. A technology that can reshape economies, transform the world of work, sway elections and tilt the balance of security is being deployed faster than anyone— including the people building it— can keep up,” said UN Secretary-General Antonio Guterres at the Opening Session of the dialogue on July 6th.
“The technologies we trust most— in aviation, in medicine, in nuclear energy and beyond— earned that trust because we acted to hold their makers to account. If AI is to be powerful, it must be governed. If AI is to be trusted, those who build it must be accountable. If AI is to be global, it must be fair. And if AI is to serve the future, it must not consume the future,” he added.
According to Guterres, AI holds immense potential to accelerate medical advancements, revolutionize educational systems, strengthen food production, and revitalize local economies, all of which would drive progress toward the Sustainable Development Goals (SDGs). Despite this, widening gaps in development have been recorded across communities in lower-income countries, particularly in the Global South.
On July 17, Guterres spoke at the World AI Conference (WAIC) in Shanghai, urging governments and stakeholders to invest in international cooperation and monitoring efforts to ensure equitable access to AI’s benefits. Guterres noted that an alarming “one-third of humanity” remains offline, with the vast majority of technical expertise and investment disproportionately concentrated in only a few countries and companies
“Hundreds of billions of dollars of private investment flood into artificial intelligence – while many developing countries receive just a trickle,” said Guterres. “AI risks pushing the world towards even greater inequalities … greater divides in income, in opportunity, in security … greater gaps between North and South.”
At WAIC, Guterres outlined three main priorities that are to be taken in advancing global AI governance: making AI more environmentally sustainable, establishing critical safety guardrails, and expanding capacity across developing countries. Underscoring the need for AI testing and risk management to be firmly based in the principles of international law, he confirmed that over 20 countries, including China, have agreed to contribute to a UN-supported Global Network for Exchange and Cooperation on AI Capacity Building to assist developing countries navigate this transition.
Throughout the conference, many UN experts emphasized that human rights must remain the cornerstone of all AI decision-making processes, ensuring that final judgments are always made by human beings. Guterres also called for major AI companies to disclose their environmental footprints and commit to a full transition to renewable energy by 2030.
AI has the potential to accelerate the transition from fossil fuels to renewable energy by optimizing power efficiency and significantly reducing waste. Several nations, including China, are already leveraging these technologies to increase their annual reliance on renewable energy.
Several developing countries in the Pacific have taken steps to reclaim agency over AI, implementing frameworks that prioritize sustainability and ensure that they remain in control regarding the technology’s development and use. For example, the Kingdom of Tonga has expanded commercial 5G access and conducted a Digital Readiness Assessment to examine risks and potential gains when coordinating governance strategies. Similar assessments have been undertaken across Samoa, Vanuatu, and Fiji.
The Kingdom of Tonga is reshaping its government services around a digital-first model by implementing AI tools that will assist citizens in interacting with the state in their own language. In Kiribati, AI monitoring technologies in fisheries have helped in recovering approximately US$2 million in illegal fishing fines.
“These are real wins, but they are wins within a system the Pacific did not design. The region already knows what it means to be on the wrong side of a divergence, in climate, in trade, in debt vulnerability,” said Kanni Wignaraja, UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific.
“AI follows the same logic at greater speed. The difference is that the rules of AI are still being written, which means the divergence is not yet locked in. That window will not stay open for long. The time for the Pacific to shape the outcome is now, not once the frameworks are agreed, and the tools are already being deployed.”
IPS UN Bureau Report
PORTLAND, USA, Jul 20 2026 (IPS) - In many countries, older adults (aged 65 and above) now outnumber younger individuals (under the age of 18), reflecting a significant demographic transformation known as demographic ageing.
The shift in a population’s age structure is becoming increasingly common around the world and is primarily driven by declining fertility rates and rising life expectancy. As populations age, societies face a range of economic, political, and social challenges.
Economically, an ageing population can lead to labor shortages, slower economic growth, and a shrinking tax base. These changes can make it more difficult for governments to finance pensions, healthcare systems, and other public services.
At the same time, the growing number of older adults increases demand for specialized healthcare services, including geriatric care, assisted living, and the treatment of chronic illnesses, placing additional strain on healthcare systems.
To promote sustainable growth and social equity, governments should seek to balance the needs of older adults with those of younger generations, ensuring that public resources support both present well-being and future development
Politically, as people live longer and represent a larger share of the electorate, older adults may gain greater political influence. Their increased voting power can shape government spending priorities, potentially leading to a larger share of public funding being allocated to pensions, healthcare, and retirement benefits, while comparatively less is invested in education, childcare, and programs that support younger generations.
Overall, demographic ageing is reshaping societies worldwide, creating both opportunities and challenges. These developments require governments to adopt balanced policies to ensure economic sustainability and intergenerational equity.
In the middle of the 20th century, older adults accounted for 5% of the world’s population of approximately 2.5 billion, while young people comprised 41%. At that time, the median age of the global population was 22 years. By the end of the 20th century, the world’s population had grown to 6.2 billion, although the age distribution changed only modestly.
In 2000, older adults represented 7% of the global population, while young people represented 36%. Meanwhile, the median age increased to 25 years, indicating a gradual ageing of the global population.
Despite the rapid growth of the world’s population during the second half of the 20th century, the proportion of older adults increased at a much slower pace. These changes mark the early stages of global demographic ageing, characterized by a gradual increase in the share of older adults and a corresponding decline in the proportion of younger people (Table 1).
Source: United Nations.
By 2026, the world’s population had reached approximately 8.3 billion. At the same time, young people accounted for an estimated 29% of the global population, while older adults represented about 11%, and the median age had risen to 31 years. By 2078, these two age groups are projected to account for equal shares of the global population, which is expected to reach 10.3 billion, with each group accounting for approximately 22% of the total population (Figure 1).
Source: United Nations.
In 2026, approximately 50 countries and territories have a higher proportion of older adults (aged 65 and above) than young people (under the age of 18). This demographic pattern is most common in the more developed countries, which tend to have lower fertility rates and longer life expectancies.
In Italy and Japan, for example, the proportion of older adults (aged 65 and above) is roughly twice that of young people (under the age of 18). Similarly, European countries such as France, Germany, Hungary, the Netherlands, Spain, and Switzerland also have substantially larger shares of older adults than young people (Figure 2).
Source: United Nations.
Demographic ageing, together with the changing proportions of older and younger populations, has significant economic, social, and political consequences.
Among the most important effects of demographic ageing are shrinking workforces, a growing proportion of retirees, rising dependency ratios, increasing pension expenditures, mounting healthcare costs, shifting political and budgetary priorities, and adapting institutions to the needs of ageing populations.
As populations age, more retirees receive pension benefits for longer periods, while a relatively smaller workforce contributes to the pension systems. Consequently, fewer workers are required to support a much larger non-working population, placing substantial pressure on public finances and social security systems. In response to labor shortages associated with shrinking workforces, many governments have introduced policies that encourage older adults to remain in the labor market for longer.
Healthcare expenditures also rise as populations age. Older adults typically require more medical care than younger people because they are more likely to experience chronic diseases, multiple health conditions, and complex healthcare needs.
As a result, demand for healthcare services such as rehabilitation, dialysis, dementia care, and long-term care continues to increase. In many countries experiencing rapid demographic ageing, governments and families face growing financial and caregiving responsibilities to support an expanding older population.
Meeting the care needs of an ageing population often creates tension over responsibility between governments and families. Governments may expect family members to assume primary responsibility for caring for older adults, while families frequently believe that governments should provide greater support and resources to meet the needs of their ageing relatives.
Some conservative and authoritarian governments argue that extensive public spending on elder care generates limited economic returns because older adults are viewed primarily as recipients of care rather than contributors to economic productivity. As a result, these governments often contend that rising healthcare and long-term care expenditures for older adults may constrain economic growth and advocate limiting public investment in these services.
Similarly, many conservatives and some policymakers often believe that caring for older adults should be the responsibility of individuals and their families, with the private sector playing a greater role rather than government in delivering care and support.
According to the World Health Organization (WHO), common health conditions associated with older age include hearing loss, cataracts, back and neck pain, osteoarthritis, chronic obstructive pulmonary disease (COPD), diabetes, depression, loneliness, dementia, and mobility limitations. Many older adults experience several of these health conditions at the same time, making their healthcare needs more complex and requiring coordinated, long-term management.
Older adults who require long-term care are disproportionately women aged 80 years and older who live alone. This group is particularly vulnerable to social isolation which is associated with poorer mental and physical health outcomes, including increased risks of depression, cognitive decline, chronic illness, and reduced quality of life.
In contrast, young people are more likely to face health issues such as injuries from road traffic accidents, falls, drowning, violence, self-harm, depression, anxiety, substance use disorders, asthma, and maternal health conditions.
Population ageing, particularly the increasing prevalence of chronic health conditions and the growing demand for long-term care, has significant implications for government policies and public programs that affect people of all ages. As these trends intensify, they place growing pressures on public resources and influence electoral priorities, shaping decisions about healthcare, social services, education, and public spending.
As older adults make up a larger share of the voting population, governments often place greater emphasis on policies that address the needs of these older adults, particularly pensions and healthcare. As policy priorities shift, investment in areas that primarily benefit younger generations – such as education, infrastructure, and long-term economic development – may decline.
To promote sustainable growth and social equity, governments should seek to balance the needs of older adults with those of younger generations, ensuring that public resources support both present well-being and future development.
Demographic ageing also presents difficult fiscal and political challenges. Governments may need to consider measures such as raising taxes, reducing pension benefits, increasing the retirement age, or implementing other fiscal reforms to ensure the long-term sustainability of public finances.
However, governments often delay implementing these reforms because they are politically unpopular. As a result, financial pressures on pension and healthcare systems continue to grow, increasing the risk of substantial funding shortfalls, or, in some cases, insolvency if reforms are postponed for too long.
Population ageing, including the point at which older adults outnumber younger people, is a global demographic phenomenon. As this demographic transformation continues across countries, governments face the ongoing challenge of adapting their economic, political, and social institutions to meet the needs of different age groups – particularly younger and older generations – while maintaining fiscal sustainability and promoting intergenerational equity.
Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division, and author of numerous publications on population issues.
SRINAGAR, India, Jul 20 2026 (IPS) - As geopolitical tensions, rising electricity demand and climate pressures reshape the global energy landscape, more than 600 energy ministers, chief executives, financial leaders and policy experts gathered in Montreal, deliberating upon how to deliver at an unprecedented scale.
The 11th Annual Global Conference on Energy Efficiency, organised by the International Energy Agency (IEA) on July 7, focused on transforming a global commitment into practical action. Delegates sought ways to meet an ambitious international target of doubling the annual rate of energy efficiency improvements by 2030, a goal widely viewed as essential for strengthening energy security while cutting greenhouse gas emissions.
Speaking during the conference, IEA Executive Director Fatih Birol described energy efficiency as the world’s “first fuel”, calling it the fastest, cheapest and cleanest resource available to countries seeking greater resilience amid growing uncertainty.
Birol reminded delegates that the global energy system has experienced only three major disruptions in recent decades. The oil crises of 1973 and 1979 fundamentally reshaped global energy policy. More recently, the supply chain disruptions following Russia’s invasion of Ukraine exposed the vulnerability of international energy markets.
Against that backdrop, he argued, improving efficiency is no longer simply an environmental objective but a matter of national security and economic stability. Growing geopolitical risks around strategic shipping routes, including the Strait of Hormuz, reinforce the urgency of reducing dependence on volatile energy supplies.
“We are in an age of rapid technological change,” Birol said, urging governments and industries to move beyond declarations and begin implementing large-scale solutions.
Throughout the two-day conference, participants repeatedly emphasised that technology alone will not deliver the transformation. Success, they said, depends on closer cooperation between governments, investors and private industry.
One of the conference’s central outcomes was the launch of the Montreal Collaboration Framework, an initiative designed to strengthen coordination between policymakers, financial institutions and businesses. The framework aims to overcome one of the biggest barriers facing energy efficiency projects, fragmented decision-making that often prevents otherwise viable investments from moving forward.
Executives participating in CEO roundtables acknowledged that many companies continue to pursue isolated efficiency upgrades that deliver only modest savings. Such projects frequently fail to attract significant investment because their financial returns appear too limited when evaluated individually.
Industry leaders instead advocated bundling multiple efficiency improvements into larger investment packages.
Rather than replacing a single motor or upgrading one heating system, companies can combine electricity savings, industrial heat recovery, cooling improvements and digital monitoring into integrated projects that generate stronger financial returns and attract institutional financing.
Another recurring theme was the growing importance of data.
Representatives from major industrial technology companies including Schneider Electric and Danfoss argued that many businesses still rely on broad estimates of their energy consumption instead of detailed operational information.
Without precise data, they warned, companies struggle to identify where the greatest efficiency gains can be achieved.
Delegates highlighted artificial intelligence, predictive analytics and digital monitoring systems as increasingly important tools for optimising industrial operations, reducing waste and lowering operating costs.
Representatives from Deutsche Bank argued that traditional investment decisions remain too heavily focused on initial capital expenditure. Instead, investors should assess projects through the lens of total cost of ownership, accounting for decades of lower energy bills, maintenance savings and reduced operational risks.
Such an approach, participants said, makes many efficiency investments substantially more attractive than they initially appear.
The conference also examined one of the energy transition’s newest challenges.
Rapid growth in artificial intelligence and digital services is driving an unprecedented expansion of data centres, creating soaring electricity demand worldwide.
Rather than viewing AI solely as a source of higher consumption, delegates argued that technological innovation can help solve its own energy challenge.
Companies showcased advanced cooling technologies, including liquid cooling and evaporative systems, capable of dramatically reducing the electricity needed to maintain modern data centres.
These innovations, participants said, demonstrate that rising digital demand does not necessarily have to translate into proportionally higher energy consumption.
Beyond technology and finance, speakers repeatedly stressed that energy efficiency must also serve broader social goals.
Yasmin Abraham, representing the Kambo Energy Group, reminded delegates that low-income communities often experience the highest energy costs while having the fewest resources to improve efficiency.
“Communities know the challenge,” she said. “Communities are closest to that challenge but furthest from the resources.”
Governments, she argued, must ensure that efficiency programmes reach vulnerable households rather than benefiting only wealthier consumers and large corporations.
Canada used the conference to announce an expansion of its Canada Greener Homes Affordability Program, which will provide energy efficiency retrofits to approximately 35,000 low- and middle-income households without upfront costs.
Officials described the initiative as an example of how public policy can reduce emissions while improving affordability and living conditions for ordinary families.
Despite widespread optimism, delegates acknowledged that achieving the 2030 efficiency target remains a formidable challenge.
Global energy demand continues to grow as economies expand, industries electrify and artificial intelligence accelerates electricity consumption. Meeting climate commitments while ensuring affordable and reliable energy will require unprecedented coordination across governments, financial institutions and private industry.
Still, the prevailing mood in Montreal remained pragmatic rather than pessimistic.
Participants agreed that the technical solutions largely exist. What has often been missing is coordinated implementation, sufficient investment and political determination.
By the conference’s conclusion, delegates appeared united around a common conviction that energy efficiency should no longer be treated as a secondary climate policy but as the foundation of future energy systems.
“With the launch of the Montreal Collaboration Framework and renewed commitments from governments, industry and financial institutions, the conference sought to transform efficiency from an often overlooked policy objective into the central pillar of global energy security, economic competitiveness and climate action,” Abraham said.
IPS UN Bureau Report
LONDON, Jul 20 2026 (IPS) - Few things unite Donald Trump’s most ardent supporters with the Democratic Party’s progressive wing, but datacentres are one of them. Across the USA, communities are joining forces across the political divide to oppose developments few want but governments seem determined to impose.
Michigan residents are among those who’ve come together across party lines to oppose plans for over a dozen datacentres. Polling shows just 28 per cent of the state’s population support the proposals. Local communities are fighting back, and similar struggles are unfolding across the world.
Datacentre impacts
Datacentre construction is booming, driven by AI use, demanding increasing computing power that requires huge amounts of electricity and water for cooling.
A single question to an AI chatbot can use 10 times more energy than a conventional search. Generating an AI image takes around a thousand times more energy than generating text. The International Energy Agency (IEA) projects that datacentre electricity demand will double by 2030.
In Utah, despite thousands of objections, authorities recently approved one of the world’s largest datacentres. It will need more power than the entire state currently uses. The development will construct a gas-fired plant.
AI growth is driving the construction of such gas-powered plants, meaning that more datacentres cause more greenhouse gas emissions. According to the IEA, coal is currently the top energy source for datacentres and over half of all current datacentre power comes from fossil fuels. The agency expects renewables to eventually provide a bigger share of growing needs, but warns that datacentre demand is driving growth for fossil fuel-generated electricity.
Tech companies once pledged to be climate leaders, but that no longer rings true. Google promised to become net zero by 2030, but its greenhouse gas emissions leapt 48 per cent from 2019 to 2023 as it embraced gas-fired electricity for datacentres. In Mumbai, India, two coal plants due to close in 2024 have had their operational life extended to meet demand from Amazon datacentres. Last December, Irish authorities decided that datacentres can keep using fossil fuel electricity for six more years. The UK intends to burn gas to power over 100 planned new datacentres.
Fossil fuel corporations lobby for datacentres almost as hard as tech companies, because they help perpetuate a destructive business model otherwise threatened by the shift to renewables. Fossil fuel corporations were among Donald Trump’s top campaign backers, and they’re benefiting from his administration’s rollback of regulations and ambition to achieve ‘unchallenged global technological dominance’.
Water supplies are coming under greater strain. One large datacentre can use as much daily water as a town of 50,000 people, yet datacentres are being built in some of the world’s driest regions. Amazon plans to open new datacentres in Aragon, Spain, even as the regional government seeks European Union help for drought. Similar concerns surround plans for one of the world’s biggest datacentres in the United Arab Emirates.
Civil society resistance
The struggle against tech companies and their lobbying riches is an unequal one, but civil society is mounting an increasingly credible response.
Climate litigation is an established civil society tactic, and recent research indicates that lawsuits are an emerging response to datacentre developments, with recent examples in Ireland, the UK and the USA. Civil society groups are also filing objections in planning processes, including one recently lodged against a huge proposed datacentre in Cape Town, South Africa.
Legal action by two UK organisations forced the developer of a huge new datacentre in Buckinghamshire to commit to binding environmental impact mitigation measures. Lawsuits are also exposing how datacentre impacts are often understated and inadequately measured. A 2022 case forced Google to publish accurate water consumption figures for an Oregon datacentre.
Protests and campaigning are bringing successes. In 2023, protests driven by a recent drought forced Google to change plans for a datacentre to reduce water use in Uruguay. Similar protests in Chile caused Google to pause its plans. As of last year, public pressure had led to over US$42 billion worth of datacentre projects being changed, delayed or cancelled in Europe, and US$77 billion worth in the USA.
In the USA, civil society groups have forged alliances with sub-national administrations to develop stronger local environmental and accountability standards. While established politicians aren’t listening, there are signs that US local politics are shifting. Some candidates opposed to datacentres have won, and several local administrations have introduced bans or moratoriums.
Campaign successes are bringing new threats. US industry lobbyists have smeared activists as agents of foreign influence determined to sabotage the country’s technological supremacy. US government documents show a growing focus on what they call ‘anti-technological extremism’, suggesting that security forces may be gathering intelligence on campaigners, and peaceful protesters could be targeted for surveillance on national security grounds.
Tech companies that are driving datacentre development often present themselves as free speech champions. They should prove it by ensuring that wherever they develop, people are able to protest, and hold them to environmental standards. There’s widespread public opposition and no shortage of people bearing the climate and environmental costs of the datacentre boom. Their voices must be heard.
Andrew Firmin is CIVICUS Editor-in-Chief, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report.
For interviews or more information, please contact research@civicus.org
LONDON, Jul 20 2026 (IPS) - We have just concluded a visit to the West Bank, Israel, Jordan and Lebanon. From all that we have witnessed and heard, our inescapable conclusion is that the government of Prime Minister Netanyahu, and in particular Ministers Smotrich and Ben-Gvir, aim to make Palestine disappear physically, economically, culturally and politically. Yet other governments either are choosing not to see this or lack the will to take meaningful concerted action.
While the population in Gaza is forcibly pushed into an ever-smaller pocket of land amid destruction and deplorable humanitarian conditions, annexation of the West Bank and East Jerusalem is occurring in plain sight. The Government of Israel’s systematic attacks on UNRWA are intended to de-legitimise the rights of Palestinian refugees. Hate speech and incitement to violence by ministers are dehumanising Palestinians and creating a dangerous enabling environment for ethnic cleansing to take root.
We have spoken to mothers, fathers and children who are living under occupation and whose lives and dignity are oppressed in every sense. This is a collective denial of humanity.
We refuse to abandon the vision of the Israeli and Palestinian peoples living alongside each other in mutual peace and security.
Self-determination is the right of Palestinians, but the current Government of Israel aims to deprive them of it permanently. Ultimately, occupation, annexation, and forced displacement leading to ethnic cleansing will also destroy the long-term prospects for Israel’s own peace and security.
We recognise that Israel has long-standing and legitimate security concerns. These have been heightened since the Hamas terror attacks of 7 October 2023 which we have unequivocally condemned.
Those concerns cannot be addressed through occupation and aggression, but only through inclusive political solutions and a genuine path to Palestinian self-determination. Many Israeli security experts share this view.
We are alarmed by the growing settler violence and the severe pressure on services provided by the Palestinian Authority – caused mainly by the Government of Israel’s unjustified withholding of Palestinian tax revenues. These are inflicting ever greater hardship on Palestinians.
Only two states living side by side in peace, with clearly negotiated borders and mutual recognition, can give security to Israelis and Palestinians alike. Peace depends on two-state security.
This will be possible only by stopping Israel’s actions and the impunity that facilitates them from the horrors of the genocide which has unfolded in Gaza and the ongoing annexation of the West Bank to the illegal US-Israeli war on Iran. The same applies to the IDF’s continuing military incursions into, and occupation of parts of Southern Lebanon: innocent civilians are being killed and hundreds of thousands of Lebanese have been uprooted from their land.
International handwringing and regret will be of no value to Palestinian men, women, and children if the E1 settlement proceeds to cut through the West Bank and seals off East Jerusalem, or when the sustained deprivation and shrinking of Gaza – already one of the most densely populated areas of the world – renders normal life impossible.
We applaud the Palestinian and Israeli human rights organisations which are shining a light on state-sanctioned abuses against Palestinian detainees. We welcome the growing criticism of settler terror attacks – often with the complicity of the IDF – against Palestinian civilians in the West Bank.
When Israeli society at large recognises both the fundamental injustice of Israel’s nearly 60-year-long occupation of Palestinian territory and the Palestinians’ right to dignity and self-determination there can be a just and lasting peace.
The same message applies to Israel’s traditional partners and allies, particularly the European Union. We support the efforts of those EU Member States which are already proposing robust actions on trade and sanctions against Israel, including suspension of the trade pillar of the EU-Israel Association Agreement. Most immediately, the EU must ban all trade with the West Bank settlements which it has long agreed are illegal. The EU has a responsibility to uphold international law; without taking decisive action it is complicit in these injustices.
The UN Security Council must act to ensure that the path forward is firmly grounded in international law.
Palestine must not disappear. Leaders must accept responsibility and act now.
Mary Robinson, former President of Ireland and former UN High Commissioner for Human Rights
Graça Machel, Founder of the Graça Machel Trust, Co-founder and Deputy Chair of The Elders
Helen Clark, former Prime Minister of New Zealand and former head of the UN Development Programme
Hina Jilani, Advocate of the Supreme Court of Pakistan and co-chair of the Taskforce on Justice
IPS UN Bureau
Excerpt:
A statement by Mary Robinson, Graça Machel, Helen Clark and Hina Jilani following their visit to the Middle East, 11-16 July 2026.
WASHINGTON DC, Jul 17 2026 (IPS) - The largest disruption to the global oil market in decades should have sent prices soaring. But after spiking at the start of the war in the Middle East, crude prices soon settled in a range of $90 to $100 per barrel, much lower than many had feared. Why didn’t prices climb higher? The answer is that a combination of factors helped cushion the initial blow. But much of that room has now been used up.
There are plenty of reasons why oil should have become cripplingly expensive. The war effectively closed the Strait of Hormuz, cutting off some 20 million barrels a day of crude oil and refined products, a fifth of global consumption. Gulf producers redirected what they could. Saudi Arabia sent oil through its pipeline to the Red Sea port of Yanbu. The United Arab Emirates pushed its Fujairah port, outside the strait, close to capacity. Even so, these workarounds offset only a fraction of lost Hormuz volumes.
Beyond crude, refined product output in the gulf region dropped significantly, hitting diesel and jet fuel hardest—products in which the region accounts for about 10 percent of global supply.
By the end of May, more than 1.1 billion barrels of crude—equivalent to about 10 days of typical global consumption—had not reached the market. At the same stage of the disruption, the shortfall exceeded those of the 1973 oil shock, the Iran-Iraq war, and the Gulf War.
Three shock absorbers
How did the global system absorb a disruption of this scale? In the days before the war, supply was running about 2 million barrels a day above demand, providing a head start. In the March-May period, three factors helped close the gap:
• Demand compression did the heavy lifting, especially in Asia, as higher prices reduced consumption and economies turned to alternatives such as coal and renewables. Transportation demand proved stickier though, in part because of fuel price caps, subsidies, and tax rebates that contained the impact—but at a fiscal cost.• Production outside the Gulf rose more than expected, by nearly 2 million barrels a day above 2025 levels. The United States led the way, with Venezuela, Guyana, and Russia also raising production.
• Inventories did the rest. The estimated market deficit of about 4.0 million barrels a day in March–May was met almost entirely by drawing down global stocks, including commercial inventories in China and strategic reserves.
Recovery won’t be instant
Before the most recent escalation of tensions, the US-Iran framework agreement to reopen the strait sent prices sharply lower, in large part because stranded oil on tankers in the Gulf could rapidly return to the market. Still, much remains uncertain—including when freedom of navigation through the world’s most critical oil chokepoint will be effectively restored, and how quickly shipping, insurance, and operator confidence will follow.
Industry estimates suggest it will take two to three months before a significant share of oil flows can resume following a full reopening of the waterway. A longer-term concern is that prolonged production halts could cause permanent output losses, especially where financing to restart wells is scarce.
Whenever supply begins to recover, the oil deficit will close only gradually, drawing inventories closer to operational minimums—the level below which the physical system itself begins to bind.
Lessons for policymakers
Energy shocks still bite. What cushioned the initial blow this time is that energy markets had room to maneuver and absorb it. As tensions flare again in the Strait of Hormuz, that room is now smaller and shrinking further as spare capacity has been deployed, demand has compressed, and inventories have been drawn down. Unless inventories are replenished, the world will start from a weaker position when the next shock comes.
For policymakers, three lessons stand out:
• Inventories matter. Rebuilding them is essential to prepare for future shocks.• A single chokepoint leaves the global economy heavily exposed. Diversifying energy sources—including renewables—is as important as diversifying routes.
• Support to consumers should be targeted to the most vulnerable and temporary to protect government budgets and the price signals that encourage energy saving and efficiency.
Energy markets’ flexibility and prompt policy actions bought the global economy time. An enduring US-Iran agreement would create an opening to restore supply. But significant efforts are still critically needed to increase the resilience and diversification of energy supply and prevent oil shocks from destabilizing the global economy.
IPS UN Bureau
Jul 17 2026 (IPS) -
CIVICUS discusses the prospects for elections in Serbia with Rasa Nedeljkov, Programme Director at the Center for Research, Transparency and Accountability, a civil society organisation that monitors electoral processes and the rule of law in Serbia.
Rasa Nedeljkov
How has President Vučić responded to demands for elections?
Vučić committed to holding early elections in 2026 under pressure from over a year of mass protests. His announcement came with no date for dissolving parliament or his resignation, amid speculation that he could return as prime minister.
Vučić has deliberately dragged his feet because he wants to ensure that when they happen, his party cannot lose. Meanwhile, the government has systematically worsened conditions for elections. Independent media are being suffocated. University professors who supported student protests are being fired. Justice officials who show independence are being replaced by more obedient ones. Hate campaigns against civil society, journalists, opposition parties and students are intensifying. The plan has been transparent: call elections only once the environment is so controlled that they cannot bring real change.
This strategy reveals the fundamental collapse of democratic standards in Serbia. Democracy requires genuine competition, and competition is genuine only when the government can lose. Vučić is building the opposite, putting in place a system where elections are empty rituals that rubber-stamp predetermined outcomes. Every month of delay has bought time to consolidate control and eliminate remaining spaces for independent voices.
What are the challenges with elections in Serbia?
Elections are being voided of substance through the systematic disregard, misuse and selective enforcement of laws and rules, all with the goal of turning elections into empty rituals.
We are witnessing harsher voter intimidation, more elaborate political clientelism, more brazen abuse of public resources and increasingly overt violence on election day. Our observers have been physically attacked, with police looking on.
Elections are still held, but the quality of the process is severely damaged. Electoral corruption takes countless forms, including interference in elections by organised crime and capture of institutions. And it’s protected by impunity. The state apparatus refuses to prosecute it.
Serbia is becoming an electoral autocracy. Unlike democracies, where governments lose elections, in electoral autocracies only opposition parties can lose.
How is the government attacking civil society?
Fourteen months ago, police raided our office and remained on-site for 28 hours, copying almost 10,000 pages of financial documents. This was turned into a spectacle for state-controlled media, which branded us a ‘criminal gang of foreign mercenaries money-laundering millions of dollars’. Three other civil society organisations in Belgrade were raided on the same day. We still haven’t heard from the prosecutor’s office, and we are certain our papers were perfectly clean.
Yet the assault continues through narrative and threat. Senior ruling party officials and pro-government media regularly label us as behind-the-scenes organisers of a ‘colour revolution against Serbia’. We live in constant uncertainty, never knowing if another raid or something worse is coming. The strategy is clear: to exhaust civil society financially and psychologically and make donors and partners fear any association with us. It’s institutional intimidation dressed in the language of law enforcement.
Can protests bring lasting institutional change?
The protests are the best thing that has happened to Serbia in a long time. Sparked by the collapse of a railway station canopy in Novi Sad in November 2024, which killed 16 people, they began as a student-led demand for accountability and grew into a nationwide movement. Our society had sunk into political apathy, a feeling that there was no alternative, not even a slight possibility of change. The endurance of Serbian people in demanding the restoration of the rule of law, in the face of growing repression and toxic propaganda, has been remarkable. Society has been evolving politically, showing more solidarity and resilience. People have begun to imagine that change is possible.
At the same time, the protests have made painfully visible how deep state capture runs, and how far Serbia is from having accountable institutions. How do you translate months of mobilisation into lasting change? Nobody has a complete answer. When we get there, the transition will be complex and exhausting. We should closely watch neighbouring Hungary. Viktor Orbán’s and Vučić’s styles of authoritarian, grand-corruption-driven rule are very much alike. However, Hungary is an EU member, which may make a big difference.
We believe it’s important that this period, rather than the moment elections are officially called, be used for preparation, including by recruiting and training people to serve as election observers and members of polling boards, and building the logistics needed to cover polling stations nationwide. The goal has to be readiness, so whenever elections are called, the infrastructure of oversight is already in place.
What’s the role of the EU in Serbia’s democratic future?
Serbia needs more international support and pressure, and the EU is the most crucial lever. Neighbouring countries are making progress towards EU membership. Serbia is stuck. Without the EU perspective, all potential outcomes for Serbia look murky.
Our current government is far closer to China and Russia than to Europe, as its propaganda and rhetoric make abundantly clear. It wants only the financial benefits of EU membership, not the accountability that comes with it. It wants EU money without EU standards. That’s not a sustainable position, but without stronger international pressure, it may be the path Serbia remains on.
CIVICUS interviews a wide range of civil society activists, experts and leaders to gather diverse perspectives on civil society action and current issues for publication on its CIVICUS Lens platform. The views expressed in interviews are the interviewees’ and do not necessarily reflect those of CIVICUS. Publication does not imply endorsement of interviewees or the organisations they represent.
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SEE ALSO
Serbia: ‘Social media are more trustworthy than much of official media, a disturbing sign of state capture’ CIVICUS Lens | Interview with Marija Babić 29.Jun.2026
Serbia: ‘We haven’t inherited democracy, so we’ve had to reinvent it ourselves’ CIVICUS Lens | Interview with Mihajlo Matković 06.Dec.2025
Serbia’s suspicious election CIVICUS Lens 26.Jan.2024