The Iran war has devastated global oil and gas supplies, driving prices higher and pushing up pump costs for drivers. Beyond energy, a range of unexpected shortages and price spikes are emerging, affecting everyday goods and services worldwide.
Some governments are urging conservation: South Korea’s president suggested shorter showers, India is seeing dishes like butter chicken drop from menus because long simmering is hard with scarce cooking gas, and the Philippines asked officials to use stairs instead of elevators to save electricity.
Here are some ways shortages may affect people soon.
Your beer and soda cans could cost more
Aluminum prices hit a four-year high after Iran struck two large smelters in the Middle East. Those smelters were major suppliers to the U.S. Aluminum — one of 60 minerals the U.S. deems critical — is widely used for beverage cans, cars and packaging, so higher aluminum prices can raise costs for many products.
Birthday balloons and smartphones need helium
The U.S. is the world’s biggest helium exporter, but Qatar produced roughly a third of global supply and has halted production and shipments because of the Strait of Hormuz blockade. Shortages are being felt most in places like South Korea and Taiwan.
Helium is crucial for MRI scanners, rocket propulsion and manufacturing semiconductor chips for computers and phones. Experts warn a prolonged or massive price jump in helium could eventually strain semiconductor production.
Fewer crops may be planted, risking food shortages
About a third of global fertilizer shipments pass through the Strait of Hormuz because Gulf states are major producers. Some fertilizer plants in India, Bangladesh and Pakistan have stopped production due to natural gas shortages. Fertilizer prices are up roughly 25% just as U.S. farmers are planting corn.
A Pennsylvania farmer said nitrogen fertilizer jumped from $500 to $850 a ton since the war started, forcing him to cut fertilizer use by at least 30% and likely plant less. The Fertilizer Institute estimates American farmers could be short about 2 million tons of fertilizer this spring, a gap that will likely reduce plantings and affect global food production over time.
Mortgage rates and borrowing costs rise
The war has increased financial market uncertainty and borrowing costs, pushing mortgage rates higher. The average 30-year fixed mortgage rate fell below 6% shortly before the war but has since climbed back toward 6.5%. Mortgage rates often follow 10-year Treasury yields, which have risen amid the conflict.
Sulfur, a battery ingredient, is getting pricier
Sulfur, used in semiconductors, batteries and other industrial materials, is often produced as a byproduct of oil refining and moves through the Strait of Hormuz. Disruptions to shipping could push sulfur prices up, affecting battery supply chains. Unlike oil or gas, sulfur can’t be easily rerouted through pipelines.
Plastics and petrochemicals face disruption
Oil is feedstock for petrochemicals and plastics. Producers in the Persian Gulf supply many Asian factories that, in turn, supply global industries. Even if the strait reopens, petrochemical supply chains could take months to clear backlogs. U.S. petrochemical prices are already rising, signaling possible shortages of plastic pellets and higher material costs across industries.
Cooking gas shortages close restaurants in India
A shortage of cooking gas (natural gas) in India is impacting households, restaurants and factories. Panic buying of gas canisters has occurred, and some restaurants have closed or raised prices due to limited supply.
— Reporting from Lilly Quiroz, Camila Domonoske, Scott Horsley, Stephan Bisaha, Fatma Tanis, Omkar Khandekar and Frank Morris
— Graphics by Brent Jones