The ongoing conflict in Iran has caused severe disruptions in helium supplies, threatening the semiconductor and healthcare industries worldwide. Amid rising prices and declining production, companies are urgently seeking alternatives to meet their needs.
The Financial Times reported that the war in Iran is beginning to have negative effects on helium supplies, a vital gas relied upon in many industries. As fears of a shortage of this gas escalate, pressures on global supply chains are increasing.
Details of the Situation
Helium is primarily used to cool electronic chips during their manufacturing, which are essential components in artificial intelligence technologies. Helium also powers advanced medical devices such as MRI machines, making its shortage a threat to the quality of healthcare services.
In this context, a subsidiary of the Air Liquide group in the United States declared a state of force majeure in its helium supply contracts, warning that it could not meet demand due to the repercussions of the conflict in the Middle East. An official from the company stated that global helium supply chains are experiencing a severe tightening, prompting companies to search for alternative sources.
Background & Context
These developments come after production halted at the Ras Laffan complex operated by QatarEnergy, which is considered the largest liquefied natural gas facility in the world, following an Iranian missile attack. Additionally, tensions threaten to close the Strait of Hormuz, disrupting regional exports, as Qatar is one of the leading helium producers globally, contributing between 30% and 40% of the world's production.
The founder of Acap Energy Consulting, Anish Kapadia, expects Qatari helium quantities to decrease by a third this year compared to 2025, which equals 11% of last year's global supplies. Helium prices have surged significantly, with recent transactions recorded at $0.90 per cubic foot, nearly three times pre-war levels.
Impact & Consequences
In Asia, particularly in South Korea—considered a major hub for the semiconductor industry—importers are intensively seeking the gas, while pressures on global markets are increasing with expectations of a decline in Qatari supplies by about a third during the current year. Chip manufacturing companies in Europe and America have already begun searching for alternative sources, as inquiries from producers in Japan and other countries are on the rise.
Experts have warned that a prolonged war could lead to restrictions on electronic chip production, especially since factories typically maintain limited helium inventories sufficient for only two to four weeks. In the healthcare sector, the potential shortage of helium raises additional concerns, given its reliance on operating sensitive medical devices, which could negatively impact the quality of healthcare services.
Regional Significance
This crisis underscores the importance of stable supplies in the region, where Qatar is a key player in the global helium market. If the crisis worsens, vital industries in Arab countries may be affected, necessitating new strategies to ensure supply continuity.
In conclusion, the current situation illustrates that ongoing geopolitical disruptions could lead to a broader crisis in global supply chains, extending beyond energy to impact advanced technology and healthcare sectors, amid limited alternatives and rapid inventory depletion.