Clearing Strait of Hormuz disruption may take over 275 days, delaying petrochemical supply recovery.

Dow CEO Jim Fitterling stated that resolving the logistics backlog caused by the Strait of Hormuz shutdown could take more than 275 days, even if the strait reopens immediately. The closure, triggered by the Iran war, halted 20% of global oil capacity and impacted 50% of ethylene and polyethylene production, key to plastics manufacturing. This disruption caused sharp price increases in petrochemical inputs like naphtha, benefiting Dow's recent financial results. The recovery is expected to be slow and complex, taking several quarters to return to normal operations.