Helium Prices Soar Amid Middle East Conflict! A Complete Guide: How Much Impact on Global Semiconductor and Other Industries

Caixin, March 13 (Editor: Xiao Xiang) — The interruption of Qatar’s natural gas processing due to the Iran conflict has caused helium prices to soar, exposing the fragility of this small but critical market that supports industries ranging from semiconductors to medical imaging…

According to Phil Kornbluth, President of consulting firm Kornbluth Helium Consulting, since the Middle East crisis began, spot helium prices have doubled, and buyers are rushing to secure supplies.

Last week, Qatar’s state-owned energy giant QatarEnergy announced a halt in its 77 million tons per year liquefied natural gas (LNG) facilities and declared force majeure on LNG transportation. Qatar is the world’s second-largest LNG exporter. Since helium is a byproduct of natural gas processing, any disruption in LNG production reduces helium supply.

Last week, Qatar’s Minister of State for Energy Affairs Saad al-Kaabi stated that even if the conflict ends immediately, normal transportation recovery would take “weeks to months.”

Data from the U.S. Geological Survey shows that Qatar produced about 63 million cubic meters of helium in 2025, while global production was approximately 190 million cubic meters, with Qatar’s share nearing one-third of the global supply. Aleksandr Romanenko, CEO of market research firm IndexBox, said, “If the disruption continues, the market will effectively lose about 5.2 million cubic meters of helium each month.”

This disruption will undoubtedly have a significant impact on a market with almost no spare capacity and limited storage, leaving buyers with few short-term alternatives.

Unique Characteristics of the Helium Market

It is noteworthy that the helium market operates very differently from most bulk commodities.

Most supplies are sold through long-term contracts rather than transparent spot markets, meaning price signals tend to be slow to emerge even when supply tightens.

This opacity makes price discovery difficult, but signs of tightening supply are already beginning to appear.

Anish Kapadia, CEO of AKAP Energy, said, “Initial signs indicate spot prices have already increased by about 50%. In case of continued disruption, prices could surge sharply and test past shortages where prices exceeded $2,000 per thousand cubic feet.”

Romanenko noted that a 30-day disruption could raise delivered helium prices by 10% to 20%, while a 60- to 90-day outage could push prices up by 25% to 50%, especially for buyers without long-term supply contracts.

AKAP Energy warned that if the disruption persists, helium prices could surpass $2,000 per thousand cubic feet.

Physical properties of helium add another layer of constraint — it is usually transported in liquid form and gradually evaporates during transit.

Chris Bakker, CEO of Avanti, said, “It’s a commodity, but it also has storage windows. Once liquefied — which is the common global transportation method — theoretically, you only have about 45 days to deliver it to the end user.”

Key industries are expected to prioritize supply

Industry insiders point out that if helium supply tightens further, suppliers typically prioritize critical sectors during force majeure allocations.

Kornbluth said industries such as medical MRI systems and rockets might receive 100% of their demand, while semiconductor manufacturers could get about 95%. Less prioritized uses, including welding, diving equipment, and party balloons, could face larger cuts.

U.S. helium consumption by end-use sectors shows semiconductors as the second-largest (percentage):

This allocation mechanism reflects helium’s role as a critical input with inelastic demand in sectors lacking substitutes.

Last week, South Korean ruling party lawmaker Kim Young-pyo warned that the US-Israel conflict with Iran could disrupt supplies of key semiconductor manufacturing materials, citing helium as an example.

Currently, to mitigate risks, major Korean chip companies like Samsung Electronics and SK Hynix are conducting comprehensive checks on their helium inventories. Industry insiders say that finding alternative helium supplies in the short term is difficult, and expensive U.S. natural gas may become an alternative.

Japan’s leading helium supplier, Iwatani Corporation, stated that it has maintained stable supplies to customers including semiconductor manufacturers, partly because it also sources helium from the U.S. and maintains inventories in Japan and the U.S.

Kapadia said that industrial gas companies sourcing helium from Qatar, including Air Liquide, Linde, and Air Products and Chemicals, are expected to be among the most affected by this supply shock.

Air Products and Chemicals has said it is taking measures to ensure continuous supply but did not provide further details. Linde stated it relies on multiple suppliers across different continents and has storage caverns in Europe.

Additionally, Kornbluth noted that Iwatani Corporation in Japan also faces risks.

Kapadia added that if the disruption continues, helium producers outside the Middle East could benefit. ExxonMobil is the largest helium producer outside Qatar, and Canadian-based North American Helium, along with smaller developers like Helix Exploration and Blue Star Helium, may see increased demand.

(Caixin, Xiao Xiang)