Brenntag CEO: Middle East conflict driving up chemical prices

By Ozan Ergenay

March 12 (Reuters) - German chemicals distributor Brenntag BNRGn.DE said on Thursday the conflict in the Middle East was pushing up prices in the sector.

As the US-Israel war with Iran continues into a second week, the escalating tension in the region disrupted markets, sparking fears that the widening war will create an oil price shock, raise inflation and dampen consumer demand.

The company's new CEO Jens Birgersson said on a call with analysts that prices are clearly moving up after the Iran conflict.

"We are active to pass on the cost increases and working intensively with that," Birgersson said.

Brenntag also announced on Thursday it aimed to achieve additional savings of 200 million euros to 250 million euros ($230-$288 million) by 2027, compared to 2025, after the German firm confirmed its preliminary full-year numbers for 2025 and core profit guidance for the current year.

The German chemical sector, the country's third-largest, has been struggling for years with subdued demand, high energy costs, supply chain issues and an economic slowdown.

($1 = 0.8677 euros)