WSJ: War impact spreads beyond oil as helium supplies plunge

The war involving Iran is now disrupting not only global energy markets but also supplies of helium, a critical industrial gas essential for semiconductor production, medical imaging, and aerospace technologies.

According to a report by The Wall Street Journal, the global helium market is under severe strain following a halt in natural gas exports from Qatar, which accounts for roughly one-third of global helium supply. Because helium is extracted as a byproduct of natural gas, the disruption has sharply reduced available volumes worldwide.

The shortage is particularly concerning because helium supply cannot be rapidly increased. The gas plays a vital role in cooling semiconductor manufacturing equipment, maintaining MRI scanners, supporting space missions, and enabling fibre-optic production. In many of these applications, there are no practical substitutes.

Market participants say suppliers have already begun warning customers about potential supply cuts and price increases. On the spot market, prices have more than doubled as buyers compete for limited cargoes. Some suppliers have declared force majeure, reducing deliveries to as little as half of contracted volumes and adding surcharges.

The disruption is closely tied to instability in the Strait of Hormuz, a key export route for Qatar’s liquefied natural gas and helium shipments. Damage to Qatar’s Ras Laffan facility from earlier strikes has further reduced output, cutting annual helium exports by about 14%, with repairs expected to take years.

The impact is being felt globally. South Korea, which relies heavily on Qatari helium, has already sought additional supplies from US producers, while Taiwan and Germany are also facing risks of supply bottlenecks. Analysts warn that prolonged shortages could disrupt semiconductor production, a cornerstone of the global technology sector.

Although the United States, the world’s largest helium producer, is relatively insulated for now, experts caution that a prolonged disruption would eventually affect all markets. Compounding the issue, helium is difficult to store long-term, as it gradually escapes from containers, limiting stockpiling options.

Industry analysts describe the situation as a major systemic shock, exposing the vulnerability of global supply chains to geopolitical disruptions. With demand spanning multiple critical industries, the helium shortage is expected to ripple across sectors, from advanced technology manufacturing to healthcare.

By Tamilla Hasanova