Note: Single-source report; awaiting corroboration.
The conflict that began with the Israeli-US bombing of Iran on 28 February has significantly affected the availability of key minerals and related products, according to the UN Economic Commission for Europe (UNECE). Minerals critical to manufacturing semiconductors, solar panels, and other technologies are facing supply pressures, resulting in higher commodity prices and shifts to production sites with lower geopolitical risk.
Dario Liguti, Director of UNECE’s Sustainable Energy Division, noted that the Gulf conflict has impacted oil-related byproducts such as sulphur, helium, and naphtha, which are used in manufacturing applications including fertilizers, plastics, cooling, and semiconductor production. He warned that industries may reduce the usage and production of products like solar panels, magnets, and batteries due to these disruptions.
Before the conflict, about 30% of global sulphur production transited the Strait of Hormuz via approximately 140 ships daily. Now, shipping in this critical waterway has nearly halted because of attacks on vessels and ongoing tensions between Iran and the United States. Continued conflict may cause shortages of key minerals, forcing industries to scale back production of renewable energy and technology components, further impacting prices and equipment availability.
Industries reliant on the Strait of Hormuz are using existing stockpiles and increasing production in other regions. Liguti highlighted a global push by many countries to secure mineral supplies and build strategic reserves to reduce the risk of future supply disruptions.