The most common and most likely answer to this crossword clue is the 7 letter word WARHEAD
I've seen this crossword clue in The Guardian
W
A
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H
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More clues leading to the result WARHEAD
Buddy explains!
The straight part
We know that "Potential source of explosion" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case potential source of explosion = warhead.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does WARHEAD mean?
WARHEAD noun- The part of a missile, projectile, torpedo, rocket, or other munition which contains either the nuclear or thermonuclear system, high explosive system, chemical or biological agents, or inert materials intended to inflict damage.
- The glans penis.