Trump's Remarks Spark Oil Price Surge, TPC Group Stocks Soar to Limit Up

Tensions in the Middle East continue to escalate. Former U.S. President Donald Trump warned yesterday (22) that if Iran attacks ships within the Strait of Hormuz, the U.S. would respond by bombing and destroying 'a bridge or power plant' in Iran. This statement sent Brent crude futures soaring to $95 per barrel at closing, marking a nearly six-week high, and propelled TPC Group stocks—including Formosa Petrochemical (6505-TW), Formosa Chemicals & Fibre (1326-TW), and Formosa Plastics (1301-TW)—to open sharply higher today (23), briefly hitting the daily trading limit.

According to international media reports, Trump’s comments come amid ongoing military confrontations between the U.S. and Iran in the Middle East, heightening geopolitical tensions along a critical global energy shipping route and pushing international oil prices upward. In addition to Brent crude, West Texas Intermediate (WTI) crude futures also rose to $89 per barrel.

Formosa Petrochemical has benefited from persistently rising oil prices, coupled with upward revisions in earnings forecasts by financial institutions and continuous target price hikes, attracting strong buying interest. Foreign investors have accumulated over 70,000 lots across 12 consecutive trading days, driving the stock price to 93.05 TWD, a nearly three-year high.

In today’s market, in addition to the TPC Group's 'Big Three,' secondary petrochemical stocks such as Delta Chemical (1309-TW) also surged to the daily limit. Shares including Taiwan Polychloride (1304-TW), Asia Polymer (1308-TW), Kuo Chiao (1312-TW), and Hwa Xia (1305-TW) temporarily rose nearly halfway to the daily limit during trading.

Analysts warn that if the Strait of Hormuz is severely disrupted by conflict, Brent crude futures could surge above $120 per barrel by the fourth quarter of 2026. The surge in multiple petrochemical stocks reflects market optimism toward refining industry profitability. However, the risk of high-volatility price swings is also increasing. Short-term traders should remain cautious of volatility, while medium- to long-term investors should monitor oil price trends and whether corporate revenues meet market expectations.