Apr 3, 2026
Since the start of the U.S.-Israel war with Iran in late February, oil prices have jumped 40% to 55%, often trading above $100 a barrel (hitting $119 briefly on Tuesday) (1).
That’s due to supply disruptions in the Strait of Hormuz, a narrow passage between Iran and the Arabian Peninsula. This is the main export route for oil from Saudi Arabia, the UAE, Kuwait, Qatar, Iraq, Bahrain and Iran, according to the International Energy Agency. About a quarter of the world’s seaborne oil trade flows through here (2).
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The skyrocketing price of oil is grabbing headlines — but it’s not the only commodity that’s experiencing a dramatic price increase as the conflict in the Middle East drags on. Three niche commodities are also critical to the economy: tungsten, sulfur and helium. And some are seeing their prices rise even faster than oil.
Tungsten
This metal is almost as hard as a diamond and has the highest melting point of all metals. That makes it useful for a number of applications, powering electronics, computing and telecommunications. It’s also the secret sauce for advanced AI chips, handling heat and providing electrical stability for reliable performance (3).
The price of tungsten was already rising, thanks to the insatiable demand for all things AI. But throw in a war, and that price has skyrocketed by 557% since last February — especially since it’s also used in military applications such as missiles, ammunition and aircraft (4).
Another issue? The metal is also scarce. China produces about 80% of the world’s tungsten supply and has tight export restrictions. More than a quarter (27%) of U.S. tungsten imports in 2024 came from China. After China, the world’s supply comes from Vietnam, Russia and North Korea. Ramping up production on home soil could take years (5, 6).
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Sulfuric acid
Sulfur is used to make sulfuric acid, which is necessary for everything from fertilizer to chemical manufacturing to petroleum refining. Electronic-grade sulfuric acid is used to clean silicon wafers during the manufacture of semiconductors, so it also plays an important role in the AI era. Unlike tungsten, sulfuric acid isn’t rare, but its price is also rising (7).
A two- to three-month blockage in the Strait of Hormuz “would likely become a severe supply shock, especially as freight/insurance stay elevated and Middle East-origin cargoes become harder to execute,” according to a March 20 note from S&P Global Energy, as reported by CNBC (8).
China also happens to be the world’s largest producer of sulphuric acid, accounting for about 35% of global production (9). Making the acid is heavily reliant on sulphur, which is a byproduct of oil refining and natural gas processing. That means production cuts to crude (as a result of missile attacks on critical facilities in the Middle East) will also impact the supply of sulphur.
Helium
This inert gas has the lowest boiling point and melting point of all chemical elements, making it useful for a range of applications that require thermal conductivity (and not just party balloons). It’s used in everything from medical diagnostic equipment to nuclear reactors. And, it’s critical to the production of semiconductors, allowing for precise temperature control to prevent damage during processing (10).
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Prior to the war in Iran, there were already shortages of helium, but a prolonged conflict could make a bad situation even worse. Prices have doubled since the start of the war, and “spot helium prices could spike by 50%–200% in severe shortage scenarios,” according to Fitch Ratings (11). Iranian missile attacks have also damaged an industrial center in Qatar that produces about one-third of the world’s helium.
While helium is abundant in the universe, on Earth it’s mainly produced from natural gas. “Though the USA once controlled 95% of the helium production in the world, and currently controls around 40% of it, there are fewer than 15 helium refineries in the country, and only half a dozen large ones,” according to the Center for Land Use Interpretation (12). Both China and Russia are ramping up their domestic helium capacity.
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What this means for consumers
While Americans directly feel the impact of higher oil prices at the gas pump, the higher cost of tungsten, sulphuric acid and helium may be less obvious. But rising prices driven by geopolitical tensions — and, in some cases, Chinese export restrictions — could have a ripple effect through global supply chains.
Tungsten, for example, is used in car parts and EV batteries, which could lead to shortages and price surges that impact the cost of buying and owning a vehicle. Sulphuric acid is used in fertilizer, which could increase the cost of food production (and your grocery bill). And helium is used in medical devices, like MRI machines, which could lead to higher healthcare costs.
Ultimately, how much the average consumer could bear the brunt of this ripple effect is yet to be seen, and depends on how long the conflict lasts.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Wall Street Journal (1); International Energy Agency (2); CNBC (3, 8); OilPrice.com (4); Nasdaq (5); Minerals Education Coalition (6); Calpac Lab (7); Market Data Forecast (9); American Chemical Society (10); Fitch Ratings (11); Center for Land Use Interpretation (12)
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Vawn Himmelsbach is a veteran journalist who has been covering tech, business, finance and travel for the past three decades. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, Metro News, Canadian Geographic, Zoomer, CAA Magazine, Travelweek, Explore Magazine, Flare and Consumer Reports, to name a few.
