There are few winners in the war with Iran, but at least one has emerged: the US plastics industry.
Prices of Persian Gulf oil, the key raw material for many plastics, have surged, forcing plastic makers in Asia and Europe to cut output. Middle Eastern producers — responsible for more than 40% of 2025 exports of polyethylene, a common plastic in bags and bottles — have also scaled back.
That has created an opportunity for US chemical companies to ramp up production and sharply hike prices, leveraging plentiful, cheap natural gas for manufacturing.
The boost to domestic plastic production couldn’t come at a better time, as polyethylene was facing a post-COVID slump due to overproduction and decreased demand.
The bad news: Consumers will start to feel the added costs, as higher prices affect industries from packaging and construction to auto manufacturing and health care.
