McKinsey: Asia Needs $1T/yr Energy Investment to Cut Supply Risk

McKinsey projects Asia requires up to $1 trillion annually in energy investment through 2040 to meet rising demand and reduce vulnerability to supply disruptions, citing the Iran war's exposure of Strait of Hormuz chokepoint risks. The firm raised its 2040 Asian energy demand forecast by 15% to 370 million terajoules, signaling a structural shift in regional energy security planning. The scale of investment need underscores persistent geopolitical risk premium in energy markets.

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