Research by the Bureau of Investigative Journalism (BIJ), in conjunction with the non-profit Private Equity Stakeholder Project and investigative outlet Data Desk indicates that local government pension schemes in the UK have invested nearly £3bn in funds which hold assets that have been adversely affected by the US-Israel war in Iran. The research draws on council records as well as data from Global Energy Monitor and Pitchbook.
These assets might include stranded fuel transporter vessels, as well as vessels or infrastructure that have been hit by military fire, or are in the direct line of fire. A ceasefire, ongoing US-Iran talks and the (at least partial) reopening of the Strait of Hormuz, as agreed by the US and Iran last week, still look to be very fragile
Financial analysts such as Guy Prince, head of energy supply at thinktank Carbon Tracker says: “It raises the question about whether long-term pension savings should depend on politically unstable regions and an uncertain future energy demand.
“Fossil fuels are financially risky now and their resilience is hugely in question. Pension funds really have to consider whether these assets remain appropriate for long-term, stable returns.”
A complex chain of investment
It is difficult to trace the complex funding deals that transfer money from UK pension pots to Middle East fossil fuel projects. Local governments invest money, via their pension schemes, in what are known as ‘infrastructure funds’. These can look attractive as they offer a healthy rate of return.
The funds are then used to seek out assets in which to invest that will provide stable long-term returns. However, one result of this is that the risk of holding those assets is transferred from the oil and gas companies to the pension funds – and, ultimately, to ordinary public sector workers and retirees.
Impact for Yorkshire
There are four major local government pension funds affecting the Yorkshire region: West Yorkshire, and the Border to Coast pension fund pool which includes North Yorkshire, South Yorkshire, and East Riding.
| Oil and gas asset | Infrastructure Fund | Local government pension scheme councils invested |
| Castrol oil warehouse | Stonepeak Infrastructure Fund V agreed to buy Castrol from BP in December 2025 | West Yorkshire |
| Al Daayen LNG tanker, Seapeak Bahrain LNG storage unit, and Bahrain LNG terminal | Stonepeak IV | East Riding, North Yorkshire, South Yorkshire |
The BIJ research indicates that West Yorkshire has invested £41mn in the Stonepeak Infrastructure Fund V and £21mn in Stonepeak IV.
The Border to Coast pension fund pool which includes North Yorkshire, East Riding and South Yorkshire has invested £73m in Stonepeak V and £112m in Stonepeak IV.
Councillor David Noland, a member of North Yorkshire’s pension fund committee, told researchers he is “exceedingly worried” to hear about these investments. He has been pushing for the fund to sell its investments in coal, oil and gas on the basis that they will fall in value as the world switches over to renewable forms of energy. “I see [this war] reinforcing those arguments,” he says.
Yorkshire Bylines contacted each of the pension funds for further comment but has received no response from them at time of publication.
Damage or threat from war
One asset that came under direct fire was the Castrol oil warehouse. At 7.20am on 1 April, a warehouse for Castrol oil in Iraq was hit by a drone causing a major fire, according to reports. As firefighters struggled to contain the blaze, there was a second attack, followed hours later by a third. “Nothing inside the warehouse remains unburned,” said a local governor.
Other areas have remained under threat. The most intense attacks during the US-Israel war on Iran have been along the coast of the Persian Gulf.
Torbjorn Soltvedt, analyst at Verisk Maplecroft, a risk consultancy, says: “These are sites that are within easy range of Iranian drones and short-range missiles. But also, we have some of the world’s most important energy facilities in these areas – so export terminals, ports, refineries, LNG facilities.”
LNG tankers such as the Al Daayen LNG tanker had been trapped in the Persian Gulf, behind the closed Strait of Hormuz and unable to move from the Bahrain LNG storage units and terminals. (Current reports show that the Al Daayen LNG now appears to have been able to leave the strait and is near its destination in Singapore).
The future must be fossil fuel free
A spokesperson for Fossil Free North Yorkshire told Yorkshire Bylines:” There are many reasons why these pension funds (and their umbrella megafunds) should remove pension fund monies- our money and our present or future pensions- from oil, gas and coal projects. These investments fuel the climate crisis. They maintain unstable, inflated energy costs in the UK, and undermine the transition to more stable and cheaper home-grown renewable energy. They jeopardise young people today being able to look forward to decent pensions in the future.
And now we see the further volatility that these investments are subject to resulting from geopolitical events causing specific choke points like this war.
From both a financial and a fiduciary standpoint continuing investments in now outdated industries makes no sense.
Nest, the government backed pension scheme, divested from a number of fossil fuel companies including Exxon Mobil in 2021 citing inadequate progress on climate. And in 2024, Netherlands-based PFZW, one of the largest pension funds in Europe, exited its investment in over 300 fossil fuel companies (98% of its fossil fuel holdings), including Shell, BP and TotalEnergies, because of a lack of convincing decarbonization plans.
We are urging Border to Coast Pension Partnership- that includes North and South Yorkshire and the East Riding pension funds – to urgently divest from fossil fuels.”
Yorkshire Bylines would like to extend sincere thanks to the Bureau of Investigative Journalism for the use of its research, media resources and for its support in compiling this article; thanks also to Fossil Free North Yorkshire for their kind assistance.
Bylines Network Gazette is out!
The latest Bylines Network Gazette is out now. Become a Friend of Bylines Network or upgrade to a paid Substack subscription, and you will get access to a vital collection of citizen articles and stories.
Journalism by the people, for the people.
