US Helium Crisis Could Have Been Prevented by Maintaining Federal Reserve
Source: Freddy Brewster. "The War in Iran Has Triggered a Helium Crisis." April 21, 2026. jacobin.com
The Gist
The author argues that America is facing a helium shortage because of the war with Iran, but this crisis could have been prevented. The US used to have a huge helium stockpile that kept prices stable, but politicians sold it all off to private companies despite decades of warnings from scientists that this was a bad idea.
Conclusion
The current helium crisis caused by the Iran war could have been avoided if the United States had maintained its Federal Helium Reserve instead of privatizing it
Premises
- The war in Iran has cut off significant global helium resources, causing 50% price increases and supply shortages
- Helium is essential for critical applications including medical procedures, semiconductor production, and space missions with no viable substitutes
- The US Federal Helium Reserve once controlled 40% of world supply and helped stabilize prices until it was completely sold off by 2024
- Scientists, medical experts, and researchers consistently warned against privatization for nearly 30 years but were ignored
- Four previous global helium shortages between 2006-2023 demonstrated that private markets cannot reliably meet demand
- Government forecasts repeatedly underestimated future helium demand while promising private sector adequacy
- The privatization created a system where only four companies could purchase federal helium below market rates, essentially providing corporate subsidies
Assumptions
- Government stockpiles are more effective than private markets for managing strategic resource shortages
- Past helium shortages are predictive of future market failures
- The timing of the Iran war and helium depletion is not coincidental but demonstrates poor planning
- Federal reserves can effectively stabilize prices during geopolitical disruptions