US sugar futures climbed toward 15.8 US cents per pound, the highest level since mid-October 2025, largely on the back of renewed strength in oil prices amid the ongoing Middle East conflict. Persistent attacks in the region, conflicting signals between the US and Iran, and the risk of broader Gulf involvement have all contributed to elevated uncertainty and volatility in energy markets.
Rising oil prices are encouraging a shift in sugarcane use toward ethanol production, thereby constraining the supply of sugar available on the global market. According to a report by Czarnikow, several Asian countries are expanding the role of ethanol in transport fuels as high oil prices continue to weigh on gasoline demand.
