• BASF cautions that the U.S.-Israeli conflict with Iran could disrupt supplies of sulfur and helium, key inputs for automotive production.
  • CEO Markus Kamieth warns rising inflation and supply-chain pressures may hurt the global economy in the second half of 2026.
  • The warning underscores growing risks to carmakers as geopolitical tensions tighten commodity markets.

BASF SE (BASFY), the world’s largest chemical company, has flagged that the escalating U.S.-Israeli conflict with Iran is increasing the risk of shortages of critical materials such as sulfur and helium, which could disrupt automotive production. CEO Markus Kamieth said that rising inflation and supply-chain pressures could weigh on the global economy in the second half, as carmakers face growing challenges securing key inputs.

“These geopolitical developments are creating uncertainty in raw material availability,” Kamieth said during a media briefing, adding that the company is closely monitoring the situation and adjusting pricing where necessary. The warning comes as the conflict in the Middle East contributes to broader commodity tightness, including helium and sulfur, which are essential for automotive and electronics manufacturing.

Helium markets have experienced volatility and supply-chain bottlenecks due to disruptions near key export corridors such as the Strait of Hormuz, affecting technology, medical, and manufacturing sectors. Sulfur, a byproduct of oil and gas refining, is also under pressure as refinery operations face risks.

BASF, which has signaled a resilient first-quarter performance, is now emphasizing its “local-for-local” operating approach to manage through the volatility. The company has previously adjusted pricing in response to raw material and energy cost pressures, including notable price actions in Europe in 2026.

The warning adds to concerns for automotive producers and suppliers, which could face production bottlenecks or plant shutdowns if input shortages materialize. Industry watchers expect continued sensitivity to political developments and energy price trajectories.

Attempts to reach BASF for additional comment were not immediately successful.