As tensions persist over the blockade of the Strait of Hormuz, the United Nations has warned that the conflict in the Middle East is no longer just disrupting oil and gas flows—it is also exposing a growing global vulnerability: a potential shortage of critical minerals essential to modern industry.
The disruption stems from the near paralysis of shipping through the Strait of Hormuz, a vital artery for global trade, forcing countries to scramble for raw materials that underpin industries ranging from semiconductors to renewable energy technologies, according to the United Nations Economic Commission for Europe.
UNECE, which includes 56 member states across Europe, North America and Asia, is working to align critical raw material supply with UN sustainable development goals.
Strait of #Hormuz crisis also impacts supply chain for #CriticalMinerals needed for the #EnergyTransition & #digital technologies, warned Sustainable Energy Director Dario Liguti in press briefing @UNGeneva ahead of Resource Management Week, set to focus on practical @UNECE tools pic.twitter.com/AGFslgN8Nb
— UNECE (@UNECE) April 23, 2026
Before the conflict involving the U.S. Israel and Iran erupted on February 28, a steady flow of key minerals and industrial inputs moved through the region.
Now, with maritime traffic severely curtailed, competition for these resources is intensifying, driving up prices and prompting a global search for alternative suppliers.
Supply Shock Spreads Beyond Energy
The impact extends beyond crude oil and natural gas to a range of critical byproducts, including sulphur, helium and naphtha—materials widely used in fertilizers, chemicals, plastics, electronics and cooling systems.
“The impact is not only in the energy market—it is also affecting sub-products derived from oil,” said Dario Liguti, Director of UNECE’s Sustainable Energy Division.
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Naphtha is a key feedstock for the chemicals industry, while sulphur plays a major role in metals processing and fertilizer production. Helium is essential for advanced manufacturing, including semiconductors.
Before the war, roughly 30% of global sulphur supplies transited through the Strait of Hormuz, with about 140 vessels passing daily. Now, shipping has slowed to a near standstill amid attacks on vessels and an ongoing standoff between Iran and the United States.
Industry Faces Production Cuts
As a result, industries are beginning to feel the strain.
“The first reaction will be industries lowering their use and therefore lowering their production,” Liguti said, warning of downstream effects on sectors ranging from solar panels and batteries to magnets and digital technologies.
For now, companies are relying on stockpiles and reserves while attempting to ramp up production in alternative locations. But if disruptions persist, shortages of key materials are expected to become more visible—first pushing prices higher and eventually limiting the availability of critical equipment.
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Global Race for Resources Intensifies
The crisis is also triggering a broader geopolitical shift.
Countries are accelerating efforts to secure access to strategic minerals, building reserves and diversifying supply chains to reduce future risks. This includes expanding processing capabilities for materials such as rare earth elements in regions seen as less exposed to geopolitical instability.
“There is a drive to secure those minerals,” Liguti said, noting that governments are increasingly creating strategic stockpiles to guard against future disruptions.
So far, the impact has been most acute in South and Southeast Asia—regions heavily dependent on refining and processing imported raw materials—but the effects are expected to spread globally if the crisis continues.
Green Energy Transition at Risk
Beyond immediate supply concerns, the disruption threatens to undermine the global shift toward renewable energy.
The same materials affected by the crisis are essential for clean technologies, meaning prolonged shortages could slow progress toward climate goals.
“You can see how a crisis focused on fossil fuels impacts the transition we need to accelerate,” Liguti said, warning that prolonged disruption could delay progress toward global climate targets, including those under the Paris Agreement.
Huma Nisar is Associate Editor at Views News Now. She also writes opinion articles on health, society and diet.
