Three niche commodity prices are surging. What they show about China's grip on supply chains

The Iran war has driven a surge in prices for critical elements used in defense and for semiconductors that power AI, reflecting supply disruptions and heightened geopolitical risk. This elevates input costs for defense contractors and chipmakers, increases supply-chain volatility, and should benefit miners and specialty materials producers while adding modest upward pressure on inflation.

Analysis

The Iran war has driven a surge in prices for critical elements used in defense and for semiconductors that power AI, reflecting supply disruptions and heightened geopolitical risk. This elevates input costs for defense contractors and chipmakers, increases supply-chain volatility, and should benefit miners and specialty materials producers while adding modest upward pressure on inflation.