Iran conflict sparks sudden boom for U.S. chemical makers (DOW:NYSE)

A surge in global plastic prices tied to the Iran conflict has delivered an unexpected windfall for U.S. chemical producers, reversing years of weak demand and oversupply, The Wall Street Journal reported Sunday. Jim Fitterling, chief executive of Dow ( The Iran conflict has disrupted Middle Eastern supplies of plastics like polyethylene, leading to soaring global prices and creating export and profit opportunities for U.S. chemical producers. Supply constraints in the Middle East and higher costs for global competitors allow U.S. producers relying on inexpensive natural gas to ramp up output and increase profit margins. Long-term margins may decrease as global producers begin using cost-competitive natural gas feedstocks, eroding the U.S. cost advantage once supply chains normalize.