Tehran’s Parliament Hints at a Hormuz Showdown That Could Skyrocket UK Energy Bills
When the Strait of Hormuz — the world’s tightest choke‑point for oil and gas — gets shut down, nations on the other side of the water will feel the tremor in their wallets. Tehran’s latest vote may just tip the scale.
Why the Strait Matters
- About 3 billion barrels of oil and gas swim through the Hormuz every day.
- If Iran decides to block this corridor to retaliate against a U.S. attack, the global supply chain could jam.
- Energy prices would react like a runaway train, with households feeling the burn.
What Ofgem Says
Ofgem has already trimmed the energy price cap by 7% for July, trimming household bills by roughly £129 to bring the cap down to £1,720 per year. That’s a bright spot right now.
Expert Take: Chris Wheaton’s Warning
The veteran oil‑and‑gas analyst at Stifel warns that a Hormuz closure would push prices back up to the levels seen in 2022, a year marked by Vladimir Putin’s full‑scale invasion of Ukraine. He adds:
“We’re more worried about European gas prices than oil.”
If LNG production from Qatar and the UAE falters, the ripple effect would push gas prices sky high across Europe, prioritising the continent’s needs and keeping Asian markets calmer. Wheaton predicts a £3,000‑4,500 per year energy cap in the UK – a hit to both the bottom line and debate in Parliament.
What’s Next for Homeowners?
In short: if the Red Sea route shuts, expect bills to climb toward historic highs and budgets to tighten.
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