West Asia crisis may support edible oil prices, says Malaysian palm oil body
This story was originally published at 14:23 IST on 6 March 2026
Register to read our real-time news.Informist, Friday, Mar. 6, 2026
MUMBAI – A prolonged military conflict in West Asia could sustain a price floor for crude oil through 2026, lending underlying support to palm oil prices and reinforcingfirm trends across the global edible oils market, according to Malaysian Palm Oil Council.
Elevated crude oil prices typically spill over into edible oil markets, including palm oil, since palm oil is also used a biofuel feedstock, a note issued by the council said, quoting its Chief Executive Officer Belvinder Kaur Sron.
She said a large share of crude oil exports from producing countries transits through the Strait of Hormuz, a critical chokepoint in global energy trade. "Such logistical disruption could also delay palm oil shipments to the Middle Eastern (West Asian) markets such as the United Arab Emirates, Iraq, Kuwait, Qatar and Bahrain," she said.
"However, the supply impact would likely be localised, mainly affecting deliveries into these destinations rather than tightening overall global palm oil supply," she further said.
She said instability in West Asia remains a geopolitical risk, and episodes of tension can quickly transmit shocks through global energy markets, war-risk insurance premiums, and key maritime trade routes.
"These dynamics can cascade into higher logistics and production costs, tighter trade finance conditions, and broader inflationary pressures -- ultimately affecting industrial competitiveness and the affordability of essential commodities, including edible oils and manufactured food products," she said. End
Reported by Abhijit Doshi
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
