It’s about to be a very difficult time to be a clown or balloon animal artist.
What happened: Helium prices have doubled since the Iran war began thanks to the effective closure of the Strait of Hormuz and its impact on Qatar, the world’s second-largest helium producer.
Why it matters: Helium isn’t just useful for making your voice sound funny. It’s also a critical ingredient in MRI systems, semiconductor manufacturing, welding, rockets, and fibre optics. That means a shortage could quickly ripple through other supply chains, particularly electronics and chips, which are already in high demand because of the AI boom.
Zoom out: Other important commodities are also likely to be in short supply because of the war. A third of the world’s fertilizer and ammonia supply also runs through the Strait, which could impact this year’s growing season and lead to higher food prices.
What’s next: Qatari officials have said that even if the Strait of Hormuz reopened tomorrow, it would take “weeks to months” for shipping to return to normal. And it sure doesn’t look like it’s going to reopen tomorrow.—TS