Sugar prices hit five-month high on Hormuz closure

Sugar prices have hit a five-month high amid Iran’s near-closure of the Strait of Hormuz, leading to supply concerns across Middle Eastern refineries.

Sugar futures for May 2026 rose 3.9 percent in New York on Thursday, while May London ICE white sugar closed 3.2 percent higher, according to Barchart, a stock and commodities data provider.

Rising gasoline prices are making ethanol more expensive and are bullish for sugar, Barchart said. It added that gasoline rallied to a 3.5-year high on Thursday, which may prompt sugar mills globally to increase ethanol production.

The strait is a primary route for delivering raw sugar to refineries in the Middle East, which convert the product into white sugar.

The waterway’s virtual closure has impacted nearly 6 percent of the world’s sugar trade, Claudiu Covrig of Covrig Analytics told Bloomberg.

Vessels carrying raw sugar to refining hubs in the Middle East have been stranded or rerouted, he said.

Sugar futures dropped to a five-year low in early March on concerns that a global sugar surplus is likely to persist, Barchart said.

The US-Israeli war with Iran has intensified since it began on February 28, with attacks on oil and gas infrastructure in the GCC region.

Further reading:

• Fujairah’s importance grows with each day Hormuz remains closed
• Oil seeps from the strait but returning full flow is far from easy
• UAE businesses scramble for Hormuz trade alternatives