Dow Chemical shares surge 75% in 2025 on bold restructuring and Iran war-driven supply boost

Dow Chemical's stock jumped 75% year-to-date in 2025, driven by a $2 billion restructuring plan and supply disruptions from the Iran war. The company cut costs, reduced jobs, and invested in AI and automation to improve profitability, while geopolitical tensions caused petrochemical shortages that boosted prices and margins. Despite a 2025 net loss, investors are optimistic about Dow's recovery, with expected EBITDA gains of $500 million in 2026. The stock's strong performance offers a way to invest in chemical sector recovery beyond defense stocks, though risks remain if Middle East tensions ease.