BlackRock Analyst: Middle East Conflict and AI Surge Help Drive Awakening of "Green Energy"

After former President Trump returned to the White House last year, betting on clean energy stocks seemed like a foolish move. However, for Helen Jewell, International Chief Investment Officer of BlackRock's Fundamental Equities business, the upward trend in clean energy is expected to continue, as the US-led Middle East conflicts have provided a harsh reminder of the world's heavy reliance on oil and gas from that region. She said, the strike against Iran "highlighted the strategic importance of energy independence, grid resilience, and domestic security power generation. Given the need for rapid and secure increments in national grids, clean energy stocks can continue to strengthen." Jewell stated, "It is very clear that in order for AI to be successful, you need so much energy that the story is no longer about 'replacing traditional energy,' but rather 'coexisting with traditional energy.'" A year has passed in the blink of an eye: as of Wednesday's close, the S&P Global Clean Energy Transition Index has surged by 61%, far exceeding the S&P 500 index's 23% increase. Its performance also outperforms the "Big Seven" by 39%, and is nearly twice the increase of oil stocks - despite crude oil prices rising to over $100 due to the Iran conflict.