The market for helium is suddenly moving into the focus of several key industries due to the war in the Middle East. What at first glance appears to be a niche topic, in reality, has direct significance for semiconductors, medical technology, aviation, and industrial manufacturing. The background is Qatar’s central role in the global helium supply: Before the Iran war, according to the US Geological Survey, more than a third of the world’s helium supply came from the Gulf state. If a significant portion of these quantities is lost, it affects not only individual producers but entire supply chains.
Exactly this scenario is now emerging. QatarEnergy’s facilities in Ras Laffan Industrial City, the world’s largest export complex for liquefied natural gas, were hit during the war. Helium is produced there as a byproduct of LNG production. After the site had already been affected by an Iranian drone at the beginning of the conflict, the facilities were further damaged by Iranian missiles on Wednesday. This is particularly significant for the helium market, as the outage in Qatar coincides with the de facto closure of the Strait of Hormuz – one of the most important transport corridors for the region.
The consequences extend far beyond the energy sector. Helium is a key factor in semiconductor manufacturing, as its cooling properties are used for heat transfer. Helium is also indispensable in photolithography, the process used to apply the fine structures of modern chips. This makes it clear why a disruption in the Gulf burdens not only raw material markets but also technology and industrial supply chains!
Helium from Qatar is central to chip manufacturing and industry
The vulnerability of the helium market is not new. As early as 2023, the Semiconductor Industry Association pointed out that disruptions to the helium supply would likely trigger shocks in the global chip industry. Now, this abstract danger is becoming more concrete. From SemiAnalysis’s perspective, a prolonged regional conflict could impair the supply of materials such as helium and bromine to chip manufacturers. The direct impact is still limited, but as the conflict continues, adjustments in procurement may become necessary.
South Korea and Taiwan, which are among the world’s most important semiconductor locations, appear particularly vulnerable. According to analysts, South Korean manufacturers sourced around 55% of their helium from Gulf Cooperation Council states in 2025. Taiwan’s figure for 2024 was even 69%. For these markets, helium is therefore not an interchangeable secondary raw material, but a critical component of their industrial infrastructure.
In addition to the chip industry, a number of other sectors also depend on stable helium supplies. These include industrial manufacturing, aerospace, and medical imaging. Especially in such applications, security of supply is typically weighted higher than the pure price. In phases of tight supply, the market therefore usually shifts in favor of suppliers, as buyers try to secure long-term quantities through contracts.
Strait of Hormuz exacerbates pressure on the helium market
The price reaction in the helium market is already clearly visible. According to Bank of America, spot prices have risen by up to 40% depending on the market. Consulting circles recently even reported increases of between 70 and 100% within just over a week. The main trigger is the restricted supply due to the closed Strait of Hormuz, which further complicates transport.
However, the immediate effect on the overall market is more complex than headlines initially suggest. A significant portion of the helium business operates through long-term contracts, with spot sales accounting for only a small part. Therefore, contract prices have hardly moved so far. This could change, however, if the shortage persists for longer and suppliers are forced to invoke force majeure even with contract customers.
In addition, there is a logistical time effect: Even if a ceasefire were reached, the resumption of production would not immediately restore the previous state. Market sources indicate that after a ceasefire, at least five weeks would be needed to restart production. Much therefore depends on how long the war lasts and how quickly transport through the region normalizes again.
A certain buffer arises from the fact that the helium market has been rather oversupplied in the past two years. This oversupply now acts as a shock absorber. Therefore, the actual deficit could currently be closer to 15% than 30%. Nevertheless, the pressure on prices and supply chains remains noticeable, precisely because market participants do not know how long the interruption will last.
Semiconductors are high on the list when helium supplies are scarce
Should helium become scarcer, the criticality of the application will determine who is preferentially supplied. From the perspective of the major US bank, semiconductors, aviation, electronics manufacturing, and medical technology are among the areas where security of supply takes precedence over price issues. Less critical applications would be pushed further down the priority list in the event of a real shortage.
However, this does not mean that even prioritized industries would be spared the consequences. Price increases would likely occur there as well. The market structure rather suggests that suppliers will try to distribute the available quantities as widely as possible, but at higher prices. This is typical for the helium market: bottlenecks affect almost all buyers, only to varying degrees.
At the same time, several banks point out that large industrial gas suppliers are comparatively well protected against direct outages through diversified procurement and inventories. For companies like Linde or Air Products, a tighter helium market could even have slightly positive earnings effects if the interruption lasts for several weeks. The longer the outage in Qatar lasts, the stronger this effect is likely to be.
Thus, the current conflict once again shows how quickly helium can turn from an often-overlooked industrial material into a strategic factor. The war in the Middle East hits Qatar, one of the most important hubs of global supply. For semiconductors, medical technology, and other high-tech sectors, this is a warning signal of how closely modern industries depend on a few geopolitically sensitive raw material flows.
High-grade helium production in Minnesota in focus
One company that could benefit significantly from the looming helium shortage is the Canadian Pulsar Helium (WKN A3EP2C / TSXV PLSR). The company is already intensively exploring its Topaz helium project in Minnesota and is primarily working to expand and more precisely define the emerging, extensive gas system.
Topaz not only has the advantage of being located in a secure location in Minnesota, but also that it involves so-called primary production. In Qatar – and also in the USA – the gas is primarily extracted as a byproduct of natural gas production. As a result, the original Jetstream #1 appraisal well at Topaz showed an average helium concentration of 8.1% during flow tests. However, helium production is already economically viable at just 0.3%!
Goldinvest.de highlighted the Pulsar Helium story, among other times, in September 2025, when the stock was still trading at 0.456 Canadian cents. Yesterday, the stock closed at CAD 1.93, approximately 323% higher. However, we believe that the end of the line has not yet been reached, not least due to recent developments. More information on Pulsar Helium can be found in the profile on Goldinvest.de!
