Why are Dow and Exxon raising plastic prices, and what is the key supply disruption cited in the article?

Dow and Exxon are raising plastic prices due to supply shocks stemming from the US-Israeli war on Iran, which has effectively halted marine traffic through the Strait of Hormuz — a critical route for about one-fifth of the world’s oil and liquefied natural gas. Since oil and natural gas are the main inputs for plastic production, the disruption has caused sharp cost increases that are being passed on to buyers, with polyethylene resin prices more than doubling since the war began.

What specific price increases have Dow and Exxon announced for polyethylene resins in North America, and how long are they expected to last?

Dow announced a 30-cent-per-pound price increase for polyethylene resins effective in April, followed by an additional 20-cent-per-pound hike planned for May, with the increases set to remain in effect through at least May. Exxon, along with Nova Chemicals, also announced a revised April increase of 30 cents per pound — up from their previously planned 20-cent hikes — according to documents viewed by Bloomberg.

Dow, Exxon and Rivals Are Raising Plastic Prices as Iran War Convulses Oil Market

Apr 14, 2026

Dow, Exxon, and rivals are hiking plastic resin prices amid Middle East conflict disrupting key oil shipping routes. Polyethylene costs have more than doubled since the war began, with recovery expected to take up to nine months.

bloomberg

2026-04-14

Dow, Exxon and Rivals Are Raising Plastic Prices as Iran War Convulses Oil Market

Dow, Exxon and Rivals Are Raising Plastic Prices as Iran War Convulses Oil Market

FAQ