New York [US], April 14: The ongoing tensions involving Israel, the United States, and Iran have increased uncertainty across the Middle East, with potential implications for regional trade flows and market confidence.
In the near term, analysts have focused primarily on energy. Roughly 30 per cent of global oil production and about 25 per cent of liquefied natural gas (LNG) exports originate from the Middle East, so any sustained disruption could tighten supply and put upward pressure on prices. Beyond energy, the situation also highlights the importance of helium-a critical input for several high-tech and medical applications.
Helium: A valuable co-product of natural gas and LNG
Helium (He), a colourless, odourless, chemically inert gas, is formed through the radioactive decay of heavy elements deep underground. Although helium is the second most abundant element in the universe, it is very light and can escape Earth's gravity over time, which makes accessible, concentrated reserves an important and strategically relevant resource.
Commercially viable helium accumulates in natural gas reservoirs where it is trapped beneath impermeable rock layers. Such high-helium natural gas deposits are extremely rare globally, limiting production to a handful of natural gas-producing countries.
The United States and Qatar are the world's largest and second-largest helium producers and exporters, respectively, with estimated outputs of around 81 and 64 million cubic metres in 2025. Other notable producers include Russia and Algeria.As a major supplier, Qatar's exports account for roughly a fifth to a quarter of the world's helium supply.
A critical element across various sectors
Helium is critical to various industries, with the largest demand coming from the electronics (25%), medical (23%), and industrial (18%) sectors.Its chemical stability, low density, and extremely low boiling point, makes it uniquely suited for sensitive applications, such as semiconductor and fibre optic manufacturing, cryogenic fuel storage for satellites and space probes, cooling superconducting magnets in MRI machines, and precision leak detection in submarines, missile systems, and high-pressure fuel lines.
These qualities and applications make helium both economically and strategically indispensable.
Potential global effects
of a prolonged helium
disruption
If disruptions to helium production and shipments were to persist through the end of the summer, global semiconductor manufacturing could face meaningful constraints that extend beyond chipmakers. Under this scenario, leading semiconductor producers-Taiwan, South Korea, and China-would be more exposed than most. China and South Korea import more than half of their helium requirements from Qatar, respectively, while Taiwan sources about one-third of its LNG from the Gulf State.
When Qatar halted LNG production in early March in response to drone attacks, associated helium output also paused, quickly tightening market conditions.
Missile strikes on Qatar's gas facilities in Ras Laffan Industrial City on 18 March 2026 have reduced the country's LNG production capacity by 17 per cent-potentially for up to five years-and imply sizeable foregone revenue (estimated at around $20 billion annually). This outage also affects associated product outputs, including helium, which is expected to decline by about 309.54 million cubic feet annually, approximately 14 per cent of Qatar's exports.
An interruption of this scale would likely ripple through global value chains, tightening the availability of critical inputs and complicating production planning across key markets. In practice, firms could face delays, higher costs, and lower output. These pressures may also extend downstream to sectors such as automotives, telecommunications, and defence, all of which rely on a steady supply of semiconductors.
In healthcare, tighter helium availability could affect MRI operations and scheduling. MRI scanners use powerful superconducting magnets that are cooled to around -269°C using liquid helium. If supply becomes constrained, some hospitals may need to prioritise usage, adjust maintenance schedules, or temporarily take machines offline. Taken together, these supply-side frictions could add pressure to parts of the healthcare system and, at the margin, weigh on economic activity.
A structural concentration-and a chance to build resilience
Beyond near-term pressures on key industries, the situation also draws attention to a structural feature of the helium market: supply is concentrated among a small number of producers. This model can function smoothly under stable conditions, but it leaves industries more sensitive to disruptions when they occur.
Addressing this challenge requires a practical, multi-pronged approach. The most straightforward step is to diversify supply sources. Expanding production in countries such as Russia and Algeria, could provide significant additional supply in the future.
Large industrial users, particularly in semiconductors and healthcare, can ease demand pressure through closed-loop helium recycling. These systems are currently underutilised largely due to upfront costs. But for large facilities, they can prove practical, cost-effective over time, and worth the initial investment for long-term supply security.
Unlike oil, helium has no coordinated global stockpiles. Private reserves exist, but they are relatively small and offer only short-term relief for certain commercial needs. Building a large and coordinated reserves at the national or industry level would provide a more reliable buffer against supply shocks and help keep markets stable.
Finally, improving supply chain transparency and coordination is crucial. Ensuring greater visibility across the helium supply chain, similar to systems used in energy, semiconductors, and healthcare, would allow a more proactive rather than reactive response to emerging disruptions.
With deliberate action to diversify supply, invest in resilience, and modernise how critical materials are managed, exposure to disruptions can be reduced. Over time, these steps can strengthen the stability of the systems and industries that underpin the modern economy-while supporting more predictable outcomes for manufacturers, hospitals, and end users alike.
By Leago Ntutu Joseph Kgasago, Economics and Special Projects, Qatar Financial Centre
Source: Qatar Tribune
