Markets Downplay War’s Impact on Petrochemicals, Pipeline CEO Says

Investors are misjudging how much Strait of Hormuz closures could impact global flows of petrochemicals, said Enterprise Products Partners LP Chief Executive Officer Jim Teague, adding to a chorus of industry voices warning about lingering disruptions from the Iran war.

“We believe the financial markets are underestimating the potential global supply implications from a prolonged closure of the Strait of Hormuz,” Teague said in a Tuesday earnings call to discuss the pipeline operator’s quarterly results. The CEO said 12 million to 15 million barrels a day of crude oil, refined products, propane and petrochemical supplies could be constrained, depending on the scenario.