The oil trade and the situation in Iran: increased volatility in the chemical unit

Yahoo Finance reported that oil transport in the Straits of Hormuz was affected by the tense situation in Iran and that oil price volatility had begun to significantly affect the Chemical Unit. According to the latest report by the United States Bank, since the escalation of the conflict, about 35 per cent of the stock price volatility of Lyondell Basell Industries, Dow and CF Industries has been associated with crude oil prices, and the proportion of Lyondell Basell has even reached 40 per cent. According to the United States Energy Information Agency (EIA), in the first half of 2025, the Strait of Hormuz transported 20.9 million barrels of oil and petroleum liquids per day, accounting for nearly 20 per cent of global oil consumption. In the second quarter of 2026, however, the flow of petroleum to Hormuz dropped to only 4.9 million barrels per day, resulting in a significant increase in crude oil prices, which reached $105 per barrel on 23 July. The Bank also noted that the rise in oil prices was not necessarily detrimental to chemical enterprises, as United States companies relied more on low-cost natural gas liquids as raw materials。