The ongoing conflict between the United States, Israel, and Iran has extended its repercussions beyond energy markets to essential commodities. A critical factor driving these price hikes is the blockade of the Hormuz Strait. As a result of these tensions, aluminum prices have reached their highest level in four years, soaring nearly 8% on the London Metal Exchange from $3,157.5 to $3,406.5 per ton between the end of last month and the 9th of this month. This price surge has been exacerbated by supply halts from smelters in Qatar and Bahrain due to their inability to secure liquefied natural gas (LNG). Furthermore, helium supply, essential for cooling semiconductor wafers, is now threatened as the Ras Laffan industrial complex in Qatar, responsible for a third of global helium production, halted operations following drone attacks from Iran.

In addition to aluminum and helium, prices for ethanol, derived from sugarcane, and urea, a key nitrogen fertilizer component, have increased by approximately 10% and 35%, respectively, since the outbreak of the conflict. According to the market analysis firm CRU, a significant portion of sulfur produced during the oil and gas refining process, accounting for half of global supply, is also trapped near the Hormuz Strait. Economist Wayne Winegarden from the Pacific Research Institute warns that losses in fertilizer supply could have significant repercussions on global agriculture, potentially increasing food costs and undermining food security globally.

The United Nations Conference on Trade and Development (UNCTAD) also issued a report indicating that due to rising energy and fertilizer prices, along with increased transport costs, there is a considerable risk of escalating food prices and a heightened burden on living costs. This situation poses a greater threat to vulnerable populations who are already experiencing economic challenges.