Energy market transmission effects become apparent, with CBOT soybean oil soaring 3.9% to a two-year high.

Due to the US and Israeli attacks on Iran last weekend, crude oil prices rose, and soybean oil prices soared to their highest level in over two years. Chicago futures rose as much as 3.9% on Monday, then fell slightly, but the main contracts are still expected to rise for the sixth consecutive trading day. Kuala Lumpur benchmark palm oil prices rose by 1.6%. The rebound in the energy market supported this increase, as rising crude oil prices typically make alternative fuel sources like biodiesel more attractive and boost demand for vegetable oils. Joe Davis, International Brokerage Director at Futures, said of soybean oil prices, "Following the attack on Iran, soybean oil prices this week will closely follow the trend of crude oil, like a magnet." After a surge in crude oil prices, the largest in four years, the conflict between the US and Iran has roiled the oil market, sparking concerns about a long-term interruption in supply through the Strait of Hormuz. Analysis indicates that while the Middle East region purchases less palm oil from India, China, and the EU, about one-fifth of the palm oil needs to be transported through the Strait of Hormuz. The escalation of conflict may not directly lead to cancellations of shipments, as there are alternative routes, although these routes take longer. A trading manager at Emami Agrotech, an Indian plant oil processing and biodiesel production company, stated that ships heading to the Middle East are avoiding these routes or requesting expensive freight charges, which could raise the prices of vegetable oils in Gulf Cooperation Council countries and impact trade flows into the region. The trading manager added that Gulf Cooperation Council countries, as well as Afghanistan and Pakistan, import about 5 million tonnes of vegetable oils annually, and ongoing wars will keep these prices high, with trade volumes likely to be affected for at least one to two months.