Chemicals: Weekly: Iran Implications – Week Fourteen

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Chemicals: Weekly: Iran Implications – Week Fourteen

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Chemicals

Weekly: Iran Implications – Week Fourteen

Industry Overview

Conflict re-escalates as Iran sends rockets into Israel 08 June 2026

On Sunday, Iran fired a melee of rockets at northern Israel, a response to the ongoing Equity

Israeli incursion into southern Lebanon and recent attacks on a Beirut suburb. While not United States

directly a resumption in actions by the US, the ongoing skirmishes are a break from the Chemicals

regional ceasefire and continue a trend of a steady escalation which included an Iranian Matthew DeYoe, CFA

rocket hitting the Kuwait International Airport this past week. The US has publicly stated Research Analyst

that it does not want to re-enter a “hot” conflict with Iran, but progress on an MOU has BofAS+1 646 855 5746

slowed and with Iran’s move on Israel, all eyes will be watching for broader conflict matthew.deyoe@bofa.com

outbreak. Based on current crude inventory “burn rates” BofA estimates the market has Hakim Sanfo

Research Analyst

until August before we hit inventory “tank bottoms,” though clearly functional deadlines BofAS

are earlier given the time required to re-establish trade flows. As we have said, we believe +1 646 743 1557

hakim.sanfo@bofa.com

the Strait of Hormuz is too important to stay closed, though it feels like governments may

need to be faced more directly with this reality before true progress is made.

Acronyms:

China ramps exports as Iran conflict leaves gaps

ICIS reported this past week that China has been ramping chemical exports as the Iran CPP: Cents per pound

conflict has created meaningful production gaps globally. The country has built up

ICIS: Independent Commodity