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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Amid Middle East escalations, clean energy stocks decline even as oil surges

Amid Middle East escalations, clean energy stocks decline even as oil surges

Spot crude oil prices in the US are on track as of Friday to finish the week up by more than 9% — the largest such gain since 2022 when markets reacted to the Russian invasion of Ukraine. In contrast, the S&P Global Clean Energy stock index fell by 1% in early trading today, registering a decline of over 4% for the week.

The escalating conflict between Israel and Iran has dominated global headlines in recent days. US President Joe Biden indicated to reporters on Thursday that he had not ruled out the possibility of an Israeli strike on Iran’s oil facilities. The comments sent shockwaves through energy markets, driving a 5% spike in crude oil prices intraday.

Meanwhile, green energy equities have largely remained moribund, with the notable exception of Constellation Energy CEG . The US-based energy company experienced a surge with news of a deal with Microsoft MSFT to restart the Three Mile Island nuclear plant to meet artificial intelligence-driven demand.

Strategas noted this morning to clients that: “Iranian production has been resilient throughout the Biden administration, increasing by +60%, and playing a key role in the supply/demand imbalance for global oil markets.”

According to analyst estimates, Iranian oil now accounts for ~12.5% of total OPEC production.

While the nature of Israel’s retaliation against Iran remains unknown, the possibility of such a large portion of global oil shipments going offline is unsettling. The market reaction in the sustainable energy sector signals limited concerns about long-term oil supply disruptions, for now.

More stories we’re tracking at Equities:

Goldman predicts GDP boost from Harris win

Goldman Sachs analysts in Thursday predicted a bigger potential boost to the US economy from a Harris victory in the upcoming election. According to the bank’s analysis, increased spending on sustainable power and infrastructure would contribute to the gains.

Google considers nuclear option

Google parent company Alphabet is considering following big tech rivals Microsoft and Amazon into the nuclear segment, according to multiple reports. The shift to nuclear power by Alphabet would come as the company struggles to achieve its goal of carbon neutrality by 2030, even as AI-demand for power balloons.

Praxis impact bond fund reaches $1 billion

Praxis Mutual Funds announced Friday that its flagship Impact Bond Fund has achieved an asset level of more than $1 billion. The milestone comes as the fund celebrates its 30th anniversary. The fund traces its history to its founding as a socially conscious vehicle for Mennonite and Anabaptist investors.

USDA backs new organic weed control research

A Pennsylvania State University research team led by Francesco Di Gioia, associate professor of vegetable crop science, has received a $1 million grant from the US Department of Agriculture to explore biological alternatives to chemical weed killers used in farming. The research, set to be conducted in Florida and Pennsylvania, is part of a larger push by the USDA to promote commercial organic and sustainable farming.

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