3 Critical Supply Chains Beyond Oil Being Upended by the Iran War

Oil has dominated headlines as the supply chain most disrupted by the Iran war, but the shock extends beyond the energy market.

Beyond oil, the conflict has upended the flows of other critical materials and commodities, including helium, pharmaceutical drugs, and fertilizer.

“The Strait of Hormuz is not only a critical chokepoint for global energy, but also for other commodities,” UBS analysts warned clients, explaining, “Any lengthy disruption will not only impact energy prices, but also food prices and industrial production.”

Here are some of the commodities critical to the global economy that are being affected by the war.

Helium

The war has damaged the world’s supply of helium, which is used in high-tech AI hardware and healthcare.

Iran attacked a Qatari liquefied natural gas plant following Israeli strikes on Iran’s gas fields. The plant accounts for nearly one-fifth of global LNG trade, and is responsible for a substantial portion of the global helium supply, given that the gas is extracted as a byproduct of LNG processing.

Qatar is one of the world’s largest helium producers, second only to the US, making more than a third of the world’s helium in 2025, according to US Geological Survey data.

Helium is a “key input for semiconductors, industrial manufacturing, and medical imaging,” UBS reported.

The helium supply disruption comes at an especially inopportune time, given the AI infrastructure buildout efforts by mega-cap tech firms.

“The market is now losing ~5.2 million cubic meters of helium per month, with almost no spare capacity globally, as helium evaporates during storage and must reach end users within ~45 days,” research from The Kobeissi Letter found.

The research also indicated that helium prices have doubled from the supply shock and could surge another 25% to 50% if the disruptions are prolonged.

Pharmaceutical drugs

Commercial transit disruptions caused by the war in Iran have hurt global pharmaceutical trade.

The medicines most at risk are those with short shelf lives, whose quality is compromised by any delays in transit.

These include vaccines, insulin, biologics, and cancer therapies, according to Think Global Health, a Council on Foreign Relations initiative.

The think tank said that short-term drug shortage risks for most countries are low given inventory buffers, but pharmaceutical companies could pass the associated costs onto the consumers.

The duration of the war will determine the severity of its impact on the pharmaceutical industry.

Fertilizer

Shipping grinding to a halt in the Strait of Hormuz has impacted the flow of fertilizer products critical for the agriculture industry.

The UN estimates that roughly one-third of global seaborne fertilizer passes through the Strait of Hormuz.

Fertilizer prices have surged as the war drags on, increasing farmers’ costs during the spring planting season, which could translate into food inflation for consumers.

The fertilizer supply shock comes alongside rising energy costs and already record-high input costs for farmers, an industry advocacy group warned.

Consumers could feel the supply shock through higher grocery store and restaurant prices, at a time when affordability is a key concern.