The closure of the Strait of Hormuz since March 2026 has disrupted supplies of raw materials used in the automotive, aircraft, pharmaceutical and semiconductor industries, in a shock whose effects have spread to factories worldwide amid the US-Iran war.
A report said the fallout from the war had prompted Japan’s Toyota to cut production by more than 80,000 vehicles, while semiconductor manufacturers faced pressure from shortages of helium gas used in cooling and cleaning processes.
Aluminium puts pressure on aircraft and automakers
The Gulf region produces about 9% of the world’s aluminium, and the report said strikes on aluminium plants in the UAE and Bahrain had pushed global prices to a four-year high, disrupting production lines at major companies.
The UAE alone supplies about 90% of US imports of high-purity aluminium used by Boeing and Airbus in aircraft manufacturing. Supply disruptions have hampered factories in Europe, Asia and the Americas, while making it more difficult and costly to source aircraft structures and electric-vehicle components.
Urea prices surge 80%
Gulf countries account for about 20% of seaborne fertilizer exports and 46% of global urea trade, while urea prices surged by about 80% at the start of the war, adding to pressure on harvests in Asia, Africa and the Americas.
The Gulf region also supplies about 20% of India’s and China’s fertilizer imports. The report warned that the disruption’s effects could extend over several months to wheat, rice and corn crops, potentially increasing the risk of a global food crisis.
Helium and chemical shortages disrupt precision industries
Shipments of gases and chemicals, including ethylene oxide and methanol, have been halted. Both materials are used to sterilize medical instruments and manufacture intravenous solution bags, syringes and dialysis tubing.
Qatar produces about 30% of the world’s helium supply, and as its exports faltered, the semiconductor industry in Taiwan and South Korea came under severe pressure because the gas is used to cool and clean electronic chips.
The impact of the helium shortage extends to the smartphone and computer industries, while clothing factories in Asia are facing a 10% to 15% increase in polyester costs.
