The conflict involving Iran has not only tightened global oil and gas supplies and pushed energy prices up, it is also producing a chain of less obvious shortages and price hikes that could affect everyday life.
Governments and businesses are already changing behavior. South Korea’s president urged citizens to shorten showers to conserve energy. In India, some restaurants have removed long-simmered dishes like butter chicken because cooking-gas shortages make slow cooking difficult. The Philippines asked public offices to favor stairs over elevators to reduce electricity use.
Aluminum: cans, cars and packaging
A strike on two large Middle Eastern smelters helped push aluminum to a four-year high. As a widely used material and one of the U.S. listed critical minerals, rising aluminum prices threaten costs for beverage cans, automotive parts and packaging.
Helium: from balloons to chips and MRIs
Although the U.S. is a major helium exporter, Qatar supplies about a third of the world’s helium and has halted production and shipments because of disruptions around the Strait of Hormuz. Shortages are being felt most acutely in South Korea and Taiwan. Helium is essential for MRI machines, certain rocket systems and semiconductor manufacturing. Industry analysts say modest price increases are manageable, but sharp spikes could create serious problems for chipmakers.
Fertilizer and food production
Roughly a third of global fertilizer shipments move through the Strait of Hormuz because of heavy Gulf production. Natural gas disruptions have already forced some fertilizer plants in India, Bangladesh and Pakistan to cut output. Fertilizer prices have climbed roughly 25% as U.S. farmers start spring planting. One Pennsylvania farmer reported nitrogen fertilizer jumping from about $500 to $850 a ton since the war began and is planning to reduce his application by around 30%. The Fertilizer Institute projects American farmers could face a shortfall of roughly 2 million tons this spring, a gap that may reduce plantings and weigh on food production over coming seasons.
Mortgage rates and financial uncertainty
Market uncertainty tied to the conflict has lifted borrowing costs. Ten-year Treasury yields have risen, and mortgage rates — which tend to follow those yields — have ticked back up after a brief dip. The average 30-year fixed mortgage has been hovering near the mid-6% range, making home financing more expensive for buyers.
Sulfur: a hidden input for batteries and chips
Sulfur, a byproduct of oil refining used in a range of industrial processes and some battery- and semiconductor components, also transits the Hormuz shipping lanes. Disruptions could raise sulfur prices and slow adjustments in supply because, unlike oil or gas, sulfur shipments are harder to reroute quickly.
Petrochemicals and plastics
Oil is a feedstock for petrochemicals and plastics, and many Asian plants rely on Gulf crude and intermediates. Even U.S. producers are seeing cost pressure. Industry groups warn that petrochemical backlogs could persist for months even if shipping lanes reopen quickly, creating shortages of plastic pellets and driving up material costs across multiple sectors.
Cooking gas shortages in India
Natural gas shortfalls in India are affecting households, restaurants and some factories. Consumers are stockpiling domestic gas canisters, eateries have temporarily closed or raised prices, and manufacturers face intermittent supply constraints.
Broader ripple effects
The war’s impact goes beyond higher prices at the pump. Interruptions to shipping and to supplies of oil-related byproducts are rippling through industries — from beverages and party supplies to semiconductors, agriculture and housing markets — and may continue to influence availability and costs in the months ahead.
Reporting by Lilly Quiroz, Camila Domonoske, Scott Horsley, Stephan Bisaha, Fatma Tanis, Omkar Khandekar and Frank Morris; graphics by Brent Jones.