The disruption to global commodity prices from the U.S.-Israeli war with Iran is spreading far beyond energy markets.
From basic plastics and fertilizer made in Saudi Arabia and Oman to sugar from Brazil and helium from Qatar, the conflict has affected the price, supply or production of a variety of commodities that are essential to the global economy.
How severe the disruption becomes will depend largely on how long the conflict drags on. A cease-fire could allow shipping lanes, airports and factories across the world to reopen, easing the strain.
But the outlook is uncertain. President Trump has sent mixed messages on whether the United States will de-escalate the situation, and Iran’s leaders have said they are prepared to continue counterattacks on American allies and threaten shipping traffic in the Persian Gulf.
In the meantime, the rising costs of some commodities could be passed on to consumers as companies look to protect profit margins.
“Inflation has become a major concern as input costs in many industries are rising,” said Chris O’Keefe, managing director and lead portfolio manager at Logan Capital Management, an investment firm. “Consumer wallets will likely be crimped.”
Here are six major commodities, besides oil and gas, that are being affected by the war.
Aluminum
Aluminum prices jumped to their highest level in almost four years on Monday as shipments from the region were disrupted, and by Tuesday afternoon the metal was up some 8 percent for the month.
The surge followed a halt to deliveries from major aluminum smelters in Qatar and Bahrain, forcing buyers to hunt for replacement metal from Asia. Producers in the Persian Gulf accounted for about 8 percent of the world’s supply of aluminum last year, according to the International Aluminum Institute.
They’ve become major producers of the metal because processing it requires huge amounts of energy, turning the region’s abundance of oil and natural gas into a competitive advantage. But the raw materials for aluminum have to be imported, by ships that travel through the Strait of Hormuz — which has been effectively closed since the war began.
Aluminum is used in everything, including airplanes, power lines, and cans. The price spike could eventually show up in everyday purchases, said Alex Jacquez, chief of policy and advocacy at Groundwork Collaborative, a research group.
Ethanol and Sugar
Some price gains have trailed the surge in global oil prices, but they’re not always what you might expect.
In Brazil, the world’s largest producer of sugar cane, the crop can be used for sugar or to produce ethanol, a fuel used in cars across the country. When ethanol prices rise, mills tend to shift production to that more profitable fuel.
That shift may be about to happen again. With oil prices soaring, ethanol has jumped about 10 percent since the war began, through the end of trading Monday. Gains like that could lead Brazilian processors to plan to use more cane for fuel when the next harvest begins in the coming weeks.
Sugar prices on the Intercontinental Exchange rose to a one-month high on Monday, before falling back on Tuesday as global energy prices also tumbled.
Urea and Sulfur
Roughly one-third of the world’s traded urea, the dominant form of nitrogen fertilizer, normally passes through the Strait of Hormuz. It’s produced in the Middle East because natural gas is an essential feedstock for the fertilizer. Shipment and production suspensions are hitting just as farmers are preparing for the spring planting season.
Urea prices have risen as much as 35 percent since the war began.
Sulfur, which is produced during oil and gas refining, is also essential for fertilizer production, and used in many other industries. The yellow powder makes it easier to cut, drill and shape certain metals, such as copper, without ruining the tools or machinery. Nearly half of the world’s sulfur is now trapped on the Gulf side of the Strait of Hormuz, according to CRU Group.
Much of that sulfur goes to China and Indonesia for fertilizer production and nickel processing, while African agriculture also depends heavily on shipments from the region.
“The loss of fertilizers could significantly impact the global agricultural sector, which could raise food costs and decrease food security globally,” said Wayne Winegarden, an economist at Pacific Research Institute, a think tank.
Helium
Helium is a vital gas for semiconductor manufacturing. It helps cool delicate equipment, powers M.R.I. machines and supports research labs and defense technologies — and of course, it’s used in party balloons.
Qatar produces roughly a third of the world’s helium, making it the second-largest supplier after the United States. But production there has been disrupted since Iran struck the Ras Laffan Industrial City — the natural gas hub where the country’s helium facilities are located.
More than a quarter of the world’s helium supply could be cut off if the Strait of Hormuz remains closed, Phil Kornbluth, president of Kornbluth Helium Consulting, told CNBC.
Kailyn Rhone is a Times business reporter and the 2025 David Carr fellow.
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