Bank of America downgrades US chemical stocks after sharp price rally amid Iran conflict.

Bank of America downgraded Dow Inc and LyondellBasell to 'Underperform' and Westlake Chemical to 'Neutral' following a 60-80% rally in their stock prices this year. The bank cited unsustainable price gains driven by market factors related to the Iran conflict. While earnings forecasts were raised due to current market conditions and higher energy prices, the bank warned that fundamentals like oversupply and falling petrochemical prices could pressure shares as markets normalize. Investor focus is expected to shift to more typical earnings by 2027-2028, with risks of global oversupply if regional conflicts resolve without capacity changes.