Iran War’s Energy Shock Is Spreading to Crop-Based Fuels

Methanol prices are surging in Southeast Asia as the war in Iran threatens supply and logistics for the chemical, putting pressure on a key biofuel feedstock. The spike could raise biofuel production costs and squeeze producer margins, transmitting higher costs into transport fuels regionally. Expect sector-level volatility across chemicals, renewable fuels and related supply chains if geopolitical tensions persist.

Analysis

Methanol prices are surging in Southeast Asia as the war in Iran threatens supply and logistics for the chemical, putting pressure on a key biofuel feedstock. The spike could raise biofuel production costs and squeeze producer margins, transmitting higher costs into transport fuels regionally. Expect sector-level volatility across chemicals, renewable fuels and related supply chains if geopolitical tensions persist.