Britain has committed a “grave strategic error” by turning its back on North Sea gas production, according to leading economist Simon French, after Israeli strikes on Iran sent oil and gas prices sharply higher.
French, chief economist at Panmure Liberum, criticised ministers for their “folly” in failing to maximise domestic gas output, warning that the UK now faces unnecessary exposure to global energy shocks.
His comments come as Brent crude surged as much as 13% overnight to more than $78 a barrel — its biggest one-day jump since the start of the Ukraine war in March 2022. European gas prices also spiked, rising up to 6.6% on fears that Iran could retaliate by disrupting the Strait of Hormuz, a critical shipping lane for global energy supplies.
“If Iran retaliates by disrupting the Strait of Hormuz, it will bring into sharp relief for the UK the folly of not maximising its domestic gas supply from the North Sea,” French said.
He added that despite recent steps to bolster long-term energy security — such as progress on nuclear baseload capacity — the government’s failure to secure short-term supply from North Sea resources represents a significant strategic misjudgment.
French’s remarks come amid heightened market volatility, with investors flocking to safe havens like gold, which is approaching record highs. Oil prices, meanwhile, have erased their losses for the year following Israel’s targeted killing of Iran’s top military commander, General Mohammad Bagheri, in a wave of strikes that also hit Tehran’s Natanz enrichment facility.
Iran has vowed a “harsh and decisive” response, further fuelling fears of broader disruption to global energy flows.
