What is Diego Garcia and why does it matter now?

Diego Garcia is a UK‑controlled base in the Indian Ocean. Reports say London has not permitted US use for possible Iran strikes. That decision affects flight distances, refueling plans, and timing. For investors, base access shapes perceived escalation risk, which can move energy prices, freight costs, and defense sentiment in Europe.

What does it mean that the UK blocks US bases?

Host‑nation consent is required before operations. UK media report permission for RAF Fairford and Diego Garcia was withheld for potential Iran strikes, citing international law. Without access, US planners must adjust routes or use other hubs. That adds complexity and may slow timelines, influencing market expectations and short‑term volatility.

How could this affect energy prices in Germany?

If markets assign higher odds to disruption near Gulf routes, crude and product risk premia can rise. That filters into German refining economics, transport costs, and utility inputs. The effect depends on policy updates and shipping conditions. Clear de‑escalation would ease pressures, while confirmed access shifts could reprice curves quickly.

What should German investors watch next?

Focus on official UK statements, NATO signals, and US Central Command updates. Look for verified changes on access to RAF Fairford or Diego Garcia, maritime security advisories, and European energy consultations. Each can reset scenario odds. Prepare a simple response plan for escalation, pause, or de‑escalation, and size risks accordingly.

Law and Government

February 21: UK Blocks US Use of Diego Garcia, RAF Fairford Over Iran

ByDanny Kontos February 21, 2026

Diego Garcia sits at the center of today’s story. On February 21, UK media reported Prime Minister Keir Starmer withheld permission for US use of RAF Fairford and Diego Garcia for potential Iran strikes, citing international law. This limits US options and raises near‑term geopolitical risk. For investors in Germany, energy security, shipping routes, and defense procurement may face new uncertainty. We outline how base access decisions can shift timelines, risk premia, and sector sentiment, and what signals to track as US‑Iran discussions evolve in the days ahead.