Iran war closed Strait of Hormuz, damaging over half of Middle East petrochemical capacity and halting shipments.
Asian ethylene/propylene utilization fell below 70%, with some plants under 60%, far from the 80% economic threshold.
US petrochemical plants run at highest capacity since 2021, boosting margins, while Europe’s utilization slipped ~3% and export limits persist.
BofA forecasts elevated polyethylene and polypropylene margins to remain through year‑end as supply disruptions persist.