How Iran's blockade of Strait of Hormuz is impacting world
Since late February, Iran's blockade of the Strait of Hormuz has choked off nearly 70% of tanker traffic.
That means key materials like helium, liquefied natural gas (LNG), aluminum have been disrupted; there are also reports of a sharp bromine shortage in South Korea.
Helium shortage in South Korea
Things got worse after drone attacks knocked out Qatar's Ras Laffan plant, which supplies about one-third of the world's helium.
Now companies like Samsung and SK Hynix are scrambling, since helium is crucial for cooling and making high-performance memory chips.
Semiconductor and oil companies are feeling the heat
South Korea depends on Middle Eastern oil to power its factories. With supply chains in chaos, Tower Semiconductor is facing severe shipment disruptions to customers such as Intel and Broadcom.
Customers are rerouting orders to Taiwanese foundries. Separately, maritime detours around the Cape of Good Hope can add about 10-14 days to voyages and roughly $1 million in extra fuel cost per trip.