Global sugar prices have surged to a five-month high as tensions involving Iran and the near-closure of the Strait of Hormuz raised concerns over supply disruptions to key refining regions.
Sugar futures for May 2026 rose 3.9% in New York, while May white sugar futures in London ended 3.2% higher, according to data from commodities tracker Barchart.
Analysts said rising gasoline prices have also supported sugar markets, as higher fuel costs tend to increase ethanol prices. This encourages sugar mills to divert more cane towards ethanol production instead of sugar, tightening supply. Gasoline prices climbed to a three-and-a-half-year high on Thursday, further strengthening this trend.
The Strait of Hormuz plays a key role in transporting raw sugar to refineries in the Middle East, where it is processed into white sugar. Disruptions in this route have affected nearly 6% of global sugar trade, according to market analyst Claudiu Covrig.
Shipping movements have been hit, with vessels carrying raw sugar either stranded or forced to change routes, adding to supply concerns.
The recent rally comes after sugar prices had fallen to a five-year low earlier this month due to expectations of a global surplus.
Market sentiment has shifted sharply following the escalation of the conflict involving the US, Israel, and Iran since late February, including reported attacks on oil and gas infrastructure in the Gulf region, which have added to volatility across energy and commodity markets.
