The ongoing Iran war has significantly disrupted the global supply of helium, a resource critical to industries such as semiconductor manufacturing, industrial production, and medical imaging [1]. The U.S. Geological Survey estimated that prior to the conflict, Qatar produced more than one-third of the world's helium supply [1]. Operations at QatarEnergy's Ras Laffan Industrial City, the world's largest liquefied natural gas export facility and a major helium producer, were halted after being struck by an Iranian drone early in the war, and further crippled by Iranian missiles on Wednesday [1].
A report from UBS Global Wealth Management's chief investment office highlighted that Qatar accounts for approximately 30% of global helium production, and any prolonged disruption could impact not only energy prices but also food prices and industrial production due to the interconnectedness of supply chains [1]. The Semiconductor Industry Association previously warned in 2023 that disruptions in helium supply could cause shocks to the global semiconductor manufacturing industry [1]. Ray Wang, a computer memory analyst at SemiAnalysis, noted that while the current impact appears limited, a prolonged regional conflict could eventually disrupt chipmakers' operations or require adjustments in sourcing key materials like helium and bromine [1].
South Korea and Taiwan, the world's two largest semiconductor manufacturers, are particularly exposed to Middle East helium supply risks. In 2025, South Korean manufacturers sourced 55% of their helium from Gulf Cooperation Council (GCC) countries, while Taiwan sourced 69% from the GCC in 2024, according to Barclays analysts [1]. The effective closure of the Strait of Hormuz has sharply limited helium supply, causing spot prices to surge. Bank of America estimated that spot helium prices have increased by as much as 40%, depending on the market, while Phil Kornbluth, president of Kornbluth Helium Consulting, reported price jumps of 70% to 100% in some cases within just over a week [1].
Bank of America analysts emphasized that helium demand is concentrated in high-value, mission-critical applications, and in these sectors, supply security is prioritized over price during periods of shortage [1].
CONCLUSION
The Iran conflict has caused a major disruption in Qatar's helium production, leading to sharp price increases and raising concerns for industries reliant on helium, especially semiconductor manufacturing. With South Korea and Taiwan heavily dependent on Gulf helium, the market impact is significant, and prolonged supply issues could force critical industries to prioritize supply security over cost. The situation remains fluid, with further disruptions likely to affect global industrial and technology sectors.