A technology drought is coming, if you need kit, buy it now before the prices shoot up

Both Iran and America blockading the Strait of Hormuz is having some significant knock on effects, not only to oil but to some lesser known products that also traverse this narrow stretch of water. 

Everyone is aware that fuel prices are only going one way and scarcity of fuel is impacting many areas of our lives however it is not just fuel that is being blocked.

One of the largest exports from the region is helium, which is also being impacted, with 33% of helium production travelling through—or not, in this case—the Strait of Hormuz. 

So what, you might think, I am not putting party balloons high on my list of essential items to stock pile, however, helium has many uses, not just for balloons and making people's voices sound funny.

Helium is critical for the manufacture of semiconductor components, the building blocks of technology.  Here are a few examples of why it is so essential:

• Helium provides an inert atmosphere, which prevents unwanted chemical reactions during semiconductor manufacturing processes.
• It is used for cooling purposes, especially in applications requiring extremely low temperatures, such as superconducting magnets and cryogenic pumps.
• Helium’s high thermal conductivity helps dissipate heat efficiently, protecting sensitive components from thermal damage.
• Its low density and non-reactivity make it ideal for purging and cleaning production equipment, ensuring high purity levels in semiconductor fabrication.
• Helium is essential in plasma etching and leak detection, both critical steps in creating integrated circuits and microchips.

20% of the world's oil travels through the Strait of Hormuz and the impact of the blockade is causing significant impacts around the world so imagine what impact losing access to 33% (a third) of all helium production will do to manufacturing.

How does this affect my business?

If you are thinking about buying or upgrading technology, do it now.  Manufactured goods are not as volatile as the oil market but significant price rises are on the way.  As manufacturers struggle to source helium, it will impact their ability to produce semiconductors.  If helium becomes scarce, the cost of it will rise, which will also see the cost of manufacturing go up, which is passed onto the consumer. 

Here are some things to consider:

• There will be rapid price spikes - Helium spot prices have already surged by 70% to 100% and prolonged disruptions could see prices rise to over US $2,000 per thousand cubic feet, representing a 50% increase in cost.
• Electronics price inflation - while helium costs are only a small part of total chip production costs, a sustained shortage forcing production slowdowns or stoppages would cause price increases in final electronics, especially for AI-related hardware, smartphones, and computers, this will cause significant price rises to the consumer as demand for fewer devices drives prices higher and higher.
• Hard disk drive price rise -  High-capacity hard drives (10TB+) are already in a constrained market. With helium being critical to their production, prices for these drives have already risen by 46% to 50% since late 2025 increasing costs of data centres which will get passed onto the consumers, the more data you store in the cloud, the more it will cost you for both storage and backups.
• Production Bottlenecks -  The semiconductor industry, particularly in South Korea and Taiwan, faces severe threats because they rely heavily on Qatari helium (55%–69% of imports) which are being impacted by the blockade in the Strait of Hormuz.

 As production costs rise, so will prices of electronic goods, things that are what you'd expect to pay today will either skyrocket or be unavailable as priority is given to AI datacentre growth.

If you are planning on purchasing equipment in the near future, avoid the price rises and call us today on 01722 411 999 and we can source what you need. 

Note - prices tend to go up much faster at the time of crisis than they come down after the crisis has ended, if they come down at all, because manufacturers take advantage of people being used to the much higher prices.