Oil Prices Surge as U.S.-Iran Conflict Reignites; NYPC and FCFC Lead Taiwan's Petrochemical Stocks to Gains

On Sunday (30th), U.S. military forces resumed attacks on Iran, targeting Larak Island along the Strait of Hormuz. Former President Trump posted an AI-generated video on social media claiming to have destroyed Iran's key oil facilities. As a result, Brent crude futures (BRENT) surged over 5%, breaking the $90 mark. On Monday (31st), despite weakness in Taiwan's electronics sector, petrochemical stocks rallied strongly. Shares of South Pacific (NYPC, 1303-TW), Formosa Chemicals & Fibre (FCFC, 1326-TW), and Kuo Chiao (1312-TW) opened sharply higher and hit their daily trading limits, leading a broad advance across the petrochemical sector.

According to international reports, this marks the U.S. military's renewed actions against Iran since July 2026. On the same day, U.S. Treasury Secretary Bessent stated that the U.S. may announce new secondary sanctions against Iran on a weekly basis, intensifying economic pressure.

In today’s trading, in addition to NYPC, FCFC, and Kuo Chiao reaching their upper limits, Formosa Plastics (1301-TW) rose nearly half of the daily limit, while Formosa Petrochemical (6505-TW), Taiwan Styrene Monomer (1310-TW), Asia Polymer (1308-TW), Taiwan Polypropylene (1304-TW), Delta Chemical (1309-TW), and Hwa Hsia (1305-TW) gained between 3% and 4%.

Institutional investors noted that the renewed direct military clashes between the U.S. and Iran have heightened market concerns over escalating conflict. If the fighting further disrupts shipping through the Strait of Hormuz, oil price volatility could intensify, supporting strong performance in petrochemical equities. In particular, NYPC benefited not only from rising petrochemical feedstock prices but also from the scarcity and price increases of fiberglass cloth and semiconductor materials, compounded by four consecutive days of foreign institutional buying, driving its stock price sharply higher.