Why did Asian petrochemical shares surge on Monday morning, and which specific companies saw notable gains or losses?

Asian petrochemical shares surged on Monday morning due to an initial US-Iran deal to end the Middle East war, which raised hopes for the resumption of vessel traffic through the Strait of Hormuz—a critical route for Middle Eastern naphtha supplies essential for Asian petrochemical production. As a result, Japan’s Mitsui Chemicals rose 7.60%, South Korea’s Lotte Chemical gained 6.14%, and LG Chem increased by 2.46%; conversely, Malaysia’s PETRONAS Chemicals Group fell 6.37%.

What is the significance of the Strait of Hormuz for Asia’s petrochemical industry, and how had the US-Iran conflict affected it?

The Strait of Hormuz is vital for Asia’s petrochemical industry because it serves as the primary maritime conduit for naphtha feedstock from the Middle East; since the start of the US-Iran conflict—and especially after the effective closure of the strait following US-Israel strikes on Iran in late February—Asia faced severe feedstock shortages, forcing producers to lower operating rates and declare force majeure.

Asia chemical shares surge on US-Iran peace deal

Jun 15, 2026

Asian petrochemical stocks surged after a US-Iran peace deal signaled the reopening of the Strait of Hormuz, easing feedstock shortages and lowering oil prices. Major firms like Mitsui Chemicals and LG Chem saw significant gains amid regional market rallies.

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