Dow Inc. (NYSE:DOW) is among the stocks Jim Cramer reviewed while discussing the Iran ceasefire that triggered a relief rally. Cramer explained why stocks like Dow are benefiting, as he commented:

LyondellBasell and Dow, commodity chemical makers, they’re benefiting from the man-made petrochemical shortage caused by the war… you know what? I’m not so sure how easy that is to give up on these as some of the endless price hikes were caused by destroyed plastic refining taken out of capacity. Those facilities won’t come back anytime soon. I’m a believer that you can own Dow or Lyondell. Wow, I’m out there.

A stock market data. Photo by AlphaTradeZone on Pexels

Dow Inc. (NYSE:DOW) develops chemical and material products used in packaging, construction, transportation, and consumer industries. During the April 1 episode, Cramer mentioned the stock while recapping the first quarter of the year. He remarked:

Let’s talk about the next group, the companies that benefit from Iran’s shutdown of the Strait of Hormuz. You got LyondellBasell, it’s up 86%, it’s plastics, Dow, up 78%, polyethylene chiefly, well, they make a lot of others, but that’s really the driver, the third and fourth best performers in the S&P. These are two commodity chemical companies, and their stocks were some of the worst performers in the index last year, but they were already starting to bounce back in January, weeks before the war with Iran kicked off, because everybody thought we’d get multiple rate cuts this year, and that’s true for textbook cyclical stocks like the petrochemicals. Turns out they benefit even more from petrochemical shortages caused by the Iranian government. I think Dow and LyondellBasell might be at risk of a pullback if the war ends and the Strait reopens. But then again, there’s a real possibility Iran will keep the Strait closed after we leave just to show us they mean business. I don’t want to, I really don’t want to mess with these… I think you should kaching kaching.

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