Iran war shifts Australian energy security approach: Datt Capital

Binaya Dahal

Journalist

20 April 2026

The fuel crisis caused by the war in Iran has resulted in a significant departure from Australia’s renewable-focused policy towards an emphasis on energy security, according to Datt Capital’s Chief Investment Officer, Emanuel Datt.

The shift comes as Canberra steps up support for domestic oil refiners in a bid to stabilise fuel supply, lifting the threshold at which assistance begins for Viva Energy’s Geelong refinery from $10.20 a barrel to $15.90, while increasing the maximum support cap by 78% to $13 a barrel.

Datt said the adjustments point to a broader recalibration of energy policy as fuel security becomes a more central constraint in decision-making across oil, refined products and LNG markets.

“The situation demonstrates that energy security is not just a price-driven exercise. Australia is likely to pursue a more balanced approach between imports and domestic production over time,” he said.

He said the recent government interventions, including underwriting oil shipments and easing diesel standards, signal a further shift away from reliance on market pricing alone towards securing physical supply of fuels.

“This marks a notable shift in policy thinking. It speaks to the importance of hydrocarbons to a modern economy like Australia, in contrast to the strong focus on renewables seen just five years ago,” he said.

He added the crisis has also laid bare how little progress the country made in converting its vast upstream resource wealth into usable refined fuel for domestic consumption.

“While Australia remains resource-rich, the key challenge lies in converting upstream production into usable fuel for domestic consumption, an area likely to see increased policy attention,” he said.

Furthermore, Datt expect the higher energy costs to flow through corporate earnings in the coming reporting season.

“Sectors such as industrials, logistics, miners will have their profits disproportionately affected, whereas financial companies will be bit more insulated.”

In response, Datt Capital has repositioned its portfolios towards greater energy exposure and is holding elevated cash reserves.

“When energy becomes the constraint and demand remains relatively inelastic, we typically see stronger prices over the medium term,” Datt said.

He said fuel scarcity is probably here to stay for the medium term as the energy landscape is disrupted across multiple fronts.