Oil & Gas
A potential peace deal between the US and Iran, alongside the reopening of the Strait of Hormuz, could expose the global chemicals industry to worsening oversupply, the Independent Commodity Intelligence Services (ICIS) said on Monday, June 22.
ICIS, in an email to Realnews, stated that “During the conflict, China helped offset disruptions to production in the Middle East and across wider Asia by significantly increasing exports. However, as production gradually returns to normal, additional volumes are expected to enter already oversupplied markets.:
ICIS forecasts global chemical overcapacity will reach 186 million tonnes in 2026, placing further pressure on operating rates, margins, and prices.
Will Beacham, deputy editor at ICIS, said that increased supply is likely to put further downward pressure on chemical prices, with buyers potentially delaying purchases in anticipation of lower costs.
“While the peace deal may ease supply concerns, a return to normal market conditions is expected to take time,” Beacham said.
ICIS estimates that crude oil logistics could take several months to recover, while petrochemical supply chains may not fully normalise until early next year. Chemicals are also expected to be lower on the restart priority list than energy and fertilisers, potentially delaying a full recovery for some facilities.
A.I
June 22, 2026
Tags: ICIS Independent Commodity Intelligence Services