The Strait of Hormuz crisis extends beyond energy markets, creating cascading effects on chemicals, metals and fertilizers. Industries from AI to food production face mounting challenges as shipping lanes remain constrained. Helium supplies from Qatar are blocked while Ras Laffan infrastructure suffers damage, forcing Asian semiconductor manufacturers to seek alternatives.

Sulphur disruption compounds the crisis, with the Middle East accounting for 45% of global exports. This affects semiconductor cleaning and mining operations for copper, cobalt and nickel—materials essential for EV batteries. Simultaneously, nitrogen fertilizer shortages emerge just as the northern hemisphere planting season begins, with Gulf states supplying urea and ammonia supporting half of global food production.

Prolonged disruption threatens worse problems than Russia's 2022 invasion, particularly for debt-strapped developing countries. Food inflation could trigger unrest, while Russia gains as an alternative supplier. The global economy faces increased stagflation risks as Iran's demonstrated strait control may tempt future toll demands, permanently elevating supply chain costs.