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Dow CEO: “The die is cast” from Iran war for high petrochemical prices through the end of 2026
Dow CEO Jim Fitterling warns that petrochemical price spikes and shortages resulting from the Iran war will fuel inflation through the end of 2026, impacting construction, consumer goods, automotive, and aerospace industries. He highlights that almost 20% of global petrochemical capacity is blocked due to the effective closure of the Strait of Hormuz, causing significant arbitrage increases between the U.S. and Asia. While U.S. petrochemical producers benefit due to their natural gas-derived feedstocks, the global supply chain disruption and volatility are a major concern, potentially leading to rising interest rates and hindering economic growth.