Iran war disrupts petrochemical supply; recovery may take up to 275 days after Strait of Hormuz reopens

The ongoing Iran war has blocked nearly 20% of global petrochemical capacity due to the closure of the Strait of Hormuz, causing significant supply chain disruptions. Dow CEO Jim Fitterling warned that it could take 250 to 275 days to fully recover once the strait reopens, with limited initial shipping capacity prioritizing oil and gas tankers. This supply shock is driving petrochemical prices higher, especially in Asia and Europe, and may worsen economic divides between East and West. The conflict's inflationary effects could also lead to higher interest rates, impacting housing demand and overall economic growth.