STOCKS | U.S. Materials Stocks Hit Hard by Oil Price Surge Amid Iran Conflict

Materials stocks, one of the best-performing sectors in the U.S. stock market this year, have been severely impacted by the recent Iran conflict, leading to a significant rise in oil prices and increased industrial production costs. According to Jin10, companies such as PPG Industries, Smurfit Westrock, International Paper, and Vulcan Materials have seen their stock prices drop by at least 16% since the market closed on February 27. This decline has contributed to a 10% drop in the S&P 500 Materials Index, which comprises 26 companies. All component stocks have experienced declines following the conflict, with only one company avoiding a yearly drop before the outbreak of hostilities. In early 2026, the sector was bolstered by record-high metal prices, strong fourth-quarter earnings, and anticipated growth in demand for chemical products. However, the recent market downturn is attributed to disruptions in the Strait of Hormuz, causing oil prices—an essential raw material for many materials companies—to surge by up to 50%, reaching nearly $110 per barrel.