Soybean oil hits over three-year high as crude oil strengthens following Trump's escalation of threats against Iran.

After U.S. President Donald Trump further threatened to destroy Iran's infrastructure, crude oil prices rose, increasing the attractiveness of biofuels as a cheaper alternative and driving soybean oil futures to their highest level since November 2022. On Tuesday, the main soybean oil futures rose by 0.7% to 70.4 cents per pound. Palm oil also rose by 1%, approaching a 16-month high before giving back some of the gains. Senior trader David Ng of Kuala Lumpur's IcebergX Sdn company stated that the rise in soybean oil was driven by market expectations: in the context of high crude oil prices, governments may increase the blending ratio of biodiesel. He added that this upward trend is also boosting optimism in the palm oil market.