The Iran war has already set the stage for elevated petrochemical prices through year-end, and the supply chain damage could take the better part of a year to unwind, Dow chairman and CEO Jim Fitterling said.

Speaking at the CERAWeek by S&P Global conference in Houston on Thursday, Fitterling warned that nearly 20% of global petrochemical capacity is now effectively blocked by the closure of the Strait of Hormuz, with ripple effects expected across construction materials, consumer goods, and the automotive and aerospace industries.

“The die is being cast for the rest of the year,” Fitterling said, comparing the disruption to the COVID-era supply chain snags. He estimated a 250- to 275-day recovery window once the strait reopens, cautioning it ...