IRAN’S threat to block the Strait of Hormuz is sparking concern across global energy markets—with potential local consequences for LNG imports at Milford Haven and a likely knock-on effect on energy prices across the UK.
The warning comes in response to recent U.S. and Israeli airstrikes on Iran’s nuclear facilities. In retaliation, Iran has said it may prevent ships from passing through the strait, one of the world’s most strategically important waterways. Nearly 20% of global liquefied natural gas (LNG) exports transit Hormuz—including the majority of Qatar’s shipments, which regularly arrive at Pembrokeshire’s two LNG terminals.
Local and National Impact
Milford Haven’s South Hook and Dragon LNG terminals are key entry points for natural gas to the UK. Much of the gas imported through these facilities is sourced from Qatar, meaning any disruption in Hormuz could delay deliveries or require tankers to take longer routes around southern Africa.
While there is no direct threat to Milford Haven itself, the potential disruption to global shipping has already led to higher gas and oil prices on international markets. Energy analysts warn that if tensions escalate or shipping is significantly delayed, UK wholesale gas prices could rise further—especially as energy suppliers begin planning for winter.
That would translate into higher energy bills for consumers and businesses. Although the UK has diversified its LNG sources and built up gas reserves, increased global competition for alternative supplies—such as from the U.S. or West Africa—could still drive up costs.
Strategic Vulnerability
The situation highlights the strategic importance of Milford Haven as a gateway for UK energy—and the vulnerability of international supply chains to geopolitical shocks. Even in a remote corner of West Wales, global events can have a direct impact on infrastructure, markets, and household finances.
While a full blockade of Hormuz is considered unlikely, even a partial disruption or perceived threat can have major effects on pricing and supply decisions. Market volatility is expected to continue in the coming days as governments and energy traders assess the risks.
