The cost of gasoline may be getting a lot of the attention, but blockages in the Strait of Hormuz impacts other industries too. Doctors are warning about the possibility of generic drugs being in short supply soon. Farmers are concerned about the cost of fertilizer, which in turn could change food prices.
And continued blockages in the strait could lead to shortages of helium — the gas that is used in party balloons, and a lot more besides.
Phil Kornbluth analyzes the helium market. He says while much attention has been paid to oil facilities being hit by Iranians in the Gulf, many helium producing locations near those sites have also been damaged. Even if the war would end tomorrow, helium impacts are coming.
"The Party balloons are about 10% of the market. The physical shortage hasn't happened yet. The physical shortage will happen in a few weeks," Kornbluth said.
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While party balloons may be the first thing you think of when you think of helium, the gas is also used in operating MRI machines at hospitals. Computer chip manufacturers need the gas too, and if there is a shortage, those sectors would be prioritized.
"They cannot make computer chips without helium," Kornbluth says.
Helium analysts say there are solutions to the possible helium crisis outside of the Middle East, with one option being Russia's helium facilities. Still, if you're planning a party soon, Kornbluth says you might want to buy your helium now.
"There's going to be price increases," he said.
