Surge of 40%! Blockage in the Strait of Hormuz Causes Major Disruption in Helium Supply Chain

The ongoing Middle East conflict continues to impact global markets. Iran’s attacks have disrupted about 17% of Qatar’s liquefied natural gas (LNG) export capacity. The conflict has also affected the global helium supply chain and is spreading to more industries.

Recently, Iran launched a new wave of attacks on key energy facilities in the Gulf region, causing a shift in energy market pricing logic. Previously, the market focused more on disruptions in energy transportation in the Middle East, meaning “supply chain disruptions”; now, with attacks on local energy infrastructure, the market is beginning to focus on “damage to supply itself.”

On Thursday local time, QatarEnergy CEO Saad Sherida al-Kaabi told the media that Iran’s attacks have caused about 17% of Qatar’s LNG export capacity to be interrupted, resulting in an estimated annual revenue loss of around $20 billion.

It is reported that the attacks damaged two of Qatar’s 14 LNG production lines, and one of its two natural gas-to-liquids facilities was also affected. Al-Kaabi pointed out that repairs will halt about 12.8 million tons of LNG capacity annually, with an expected duration of three to five years.

From a longer-term perspective, analysts believe this round of conflict could bring some structural changes. In terms of pricing, Middle Eastern energy may be redefined by the market as a “higher-risk” supply source in the foreseeable future, and the premium Qatar previously enjoyed for stability may be affected. Meanwhile, buyers may start diversifying their sources and reduce dependence on a single region.

Another resource that is often overlooked but is very critical has also been impacted: helium.

Helium is an important raw material for many industries, especially in technology sectors, where it is widely used in semiconductors, aerospace, electronics manufacturing, and medical imaging. Before this conflict, Qatar supplied over one-third of the world’s helium.

The blockade of shipping through the Strait of Hormuz has caused helium prices to rise significantly. Recent estimates from U.S. banks suggest that spot prices for helium have increased by about 40% depending on market conditions. Analysts point out that as supply tightens, key industries that demand helium tend to prioritize supply security over price, making it easier for suppliers to raise quotes.

(Source: CCTV Finance)