Soybean oil surges to two-year highs following geopolitical tensions.

Soybean oil surges to two-year highs following geopolitical tensions. Chicago futures jumped as much as 3.9% on Monday after US and Israeli strikes on Iran, with the most-active contract tracking toward a sixth consecutive advance. Benchmark palm oil in Kuala Lumpur also climbed 1.6%. The rally reflects broader energy market strength, as higher crude prices make alternative fuel sources like biodiesel more economically attractive and boost vegetable oil demand. About one-fifth of global palm oil shipments transit the Strait of Hormuz, creating supply chain concerns. Analysts warn that escalating Middle East conflict could elevate vegetable oil prices for weeks, particularly impacting Gulf Cooperation Council nations, Afghanistan, and Pakistan, which collectively import roughly 5 million tons annually.