Naphtha's roughly 24 percent surge squeezes Asian petrochemical margins

The renewed naval blockade of Iran and the Strait of Hormuz disruption have lifted naphtha, the main feedstock for Asia's petrochemical industry. According to data from Korea National Oil Corporation's Petronet system, naphtha reached about $82 a barrel by July 13, 2026, roughly 24 percent above its June low.

Asian steam crackers source more than 60 percent of their naphtha from West Asia and the Persian Gulf, and that dependence leaves producers in South Korea, Taiwan and Japan exposed to the Hormuz disruption. Before the crisis, about 20 percent of the world's oil transited the strait.

The higher feedstock cost erases the relief producers gained in the first half of 2026 and prolongs the squeeze on margins.