Cambridge Professor Helen Thompson on the Iran War, Energy Markets and Britain’s Risks

In this episode of Merryn Talks Money, host Merryn Somerset Webb interviews Professor Helen Thompson, a political economy expert at the University of Cambridge, about the escalating conflict with Iran, its impact on global energy markets, and the UK's growing energy vulnerabilities. Thompson argues that the war is not just about Iran's nuclear ambitions but part of a broader U.S. strategy to reconfigure global energy geopolitics, particularly to disrupt China’s energy dependencies in the Middle East and Venezuela. She highlights how attacks on infrastructure in the Persian Gulf—especially Qatar’s liquefied natural gas facilities—have caused lasting damage, undermining the assumption of stable energy flows. Even if hostilities cease, the world cannot return to pre-war energy normalcy due to shattered trust and infrastructure losses. The UK, despite its net zero ambitions, is exposed by its overreliance on imported fossil fuels, weak domestic refining capacity, and lack of strategic energy planning. Thompson critiques the UK’s outdated energy policies, including the absence of new refineries since 1969 and the closure of the last coal plant, leaving it without fallback options during crises. While fracking is unlikely to be viable in Europe due to geological constraints, she sees cautious optimism in rising political awareness around energy security and renewed interest in nuclear power. The episode ends on a note of cautious hope: the crisis may finally force a long-overdue reckoning with energy strategy in the UK.