The wars in Iran and Ukraine show how the drone tech revolution makes it easier — and cheaper — to interrupt energy supplies by striking refineries and oil tankers.

Why it matters: It's an important reason why oil traded at $100 per barrel this week and gasoline and diesel fuel are so expensive these days.

• Looking ahead, the way drones are reshaping modern warfare has high stakes for how policymakers and companies view new and existing power grids, pipelines, liquefied natural gas ports and plenty in between.

The big picture: "Anyone building energy infrastructure in any area where kinetic conflict is even remotely possible is going to have to think about drone defense," said Gregory Brew, an analyst with the Eurasia Group, a political risk consulting firm.

Catch up quick: Ukraine has increasingly carried out effective drone strikes against multiple Russian refineries from great distances, and Russian crude infrastructure in and around the Black Sea.

• Iran has used drones to attack shipping in and around the Strait of Hormuz, deterring oil, refined products, and LNG transit despite the overwhelming U.S. military advantage.

Iran has also used drones, not just missiles, to attack other regional energy sites, including Qatar's main LNG export hub.

• "A localized conflict in the region effectively triggers global economic shockwaves by taking oil and gas production offline via cheap, massed drone attacks," notes an article this month via West Point's Modern War Institute.

State of play: Tatiana Mitrova, a fellow at Columbia's Center on Global Energy Policy, said planning now requires "completely different thinking" around electricity and fuels.

• One lesson, she said, is the usefulness of more distributed energy networks — even if that means cost tradeoffs.
• Ukrainian forces have already been employing more mobile, on-site power sources in response to Russian attacks on the country's grid systems, she said.

"For many decades, like for the whole previous century, the idea was about concentration and economy of scale," she said. "But now, the bigger the target, the bigger the damage."

• That puts a premium on more "modular" infrastructure, she said — "small scale, faster to build, cheaper to build, cheaper to move."

Zoom out: Lots of key infrastructure has fixed and known locations, like pipelines.

• Countermeasures will vary depending on the type of energy infrastructure that needs defending.
• There are some existing anti-drone tools, ranging from netting to lasers and electronic jamming, as well as missile systems.

Yes, but: Some analysts say U.S. and other military planners must be more responsive to the evolution of drone attacks on electricity and oil and gas supplies.

• Missile interceptor systems are expensive and can't realistically cover all critical infrastructure.

What we're watching: The Modern War Institute's analysis, which is mostly focused on electricity, calls for "rethinking energy defense" in the age of cheap drones and missiles. That means ...

• "[D]ecentralization and microgrids can be used in high-risk areas or regions."
• Hardening large power assets that can't be decentralized via blast walls, netting around high-voltage transformers, and burying some systems.
• Stronger cooperation between the military and the energy industry, because the U.S. and allies "must stop treating energy security as a secondary logistical concern."

🚨 FERC won't hesitate to use the "full extent of our legal authority to implement reforms necessary" if PJM and its stakeholders don't quickly reach an agreement on improving the grid operator's performance, FERC chair Laura Swett said (h/t Bloomberg).

• Why it matters: Her comments at a day-long conference yesterday impose a short timeline for changes at the grid operator, which is struggling to secure enough new generation to meet rising demand while controlling costs.
• What they're saying: PJM will likely look to three buckets of changes, analysts with investment firm TD Cowen said in a note: greater board independence, an expanded role for states in the PJM region, and process changes that mean stakeholders "lose ability to block action indefinitely."
• What's next: FERC will step in unless there are "credible, meaningful reforms or an agreement in principle by the end of September," Swett said, but also expressed confidence in success "without commission intervention."

🖋️ A suite of power companies, states and others added their names to the White House "ratepayer protection pledge," committing to shield consumers from the costs of new generation and grid upgrades to serve AI data centers.

• Why it matters: The pledge, first unveiled in March, is not a legal document, but adds to what's already massive political pressure on tech giants and utilities to prevent adding to power bills.
• The big picture: The pledge now covers 80% of power delivered to U.S. homes, the White House said yesterday.
• Yes, but: It's somewhat of a lagging indicator of tech company vows, recent agreements around new data centers, and state policies. The NYT has more.

Used electric vehicles are flying off dealer lots as pinched car buyers hunt for budget-friendly options.

Why it matters: The soaring demand has led to a rare phenomenon — used EVs rising in value, rather than depreciating, according to Recurrent, a research firm specializing in the used EV market.

The big picture: While the number of used EVs sold in June was lower than May, unit sales are still up 20% compared to June 2025, per Cox Automotive.

• A surge in off-lease EV returns and trade-ins means used-car buyers have a deeper market to choose from.
• Meanwhile, gas prices remain high as the U.S.-Iran war drags on, giving consumers more reason to consider an EV.

By the numbers: Used EV prices are up more than 5% since January, with the biggest gains at the affordable end of the market (below $20,000), per Recurrent.

• A used 2023 Chevrolet Bolt EV, for example, cost less than $18,000 back in January. Now it's over $21,000 — almost 20% more.
• A 2022 Tesla Model 3 that cost around $23,750 at the start of 2026 now costs nearly $27,000.

What we're watching: Availability of two- and three-year-old EVs will grow over the next few years.

The bottom line: Used EVs are likely to play an important role in addressing vehicle affordability and broadening overall EV adoption in the U.S.

Cox Automotive is owned by Cox Enterprises, Axios' parent company.

PJM's old way of getting power built isn't working. Has it found a fix? (Canary Media)

Amy says: This story gets closer than most to helping me understand the intricacies of PJM's rulemaking process, though I'll admit I still have a lot to learn about not only these complexities – but how to translate them in a way so more people understand.

Can the EPA withdraw the endangerment finding? (Regulation)

Ben says: Environmental law scholar Jonathan Adler's piece isn't the usual fare when it comes to criticism of EPA's repeal effort. Instead, he argues, the effort hinders the EPA's wider agenda on deregulation.

"A better way to be relevant": Greens embrace data center fight (Politico)

Amy says: It appears environmental groups are dipping their toes into the data center battle, but there still isn't an organizing principle to be had (yet) like there was with fossil fuels.

The Pentagon is blocking more than 150 wind projects over drone fears (Grist)

Amy says: This is the first time I've seen the Pentagon address why specifically they're delaying these wind farms.

• The contrast between the administration's delays and its stated goal to have as much energy as possible is stark here.

That's the deal value in Brookfield Asset Management's plan to buy the major battery storage developer Aypa Power.

Why it matters: Storage is hot.

• "Aypa is the largest standalone battery storage developer in North America," the announcement states, noting Aypa's development pipeline is 20+ gigawatts.