Indonesian Palm Oil Producers Celebrate Amid Iran Crisis
Jakarta - Crude palm oil (CPO) prices rebounded sharply on Monday 9 March 2026, marking the highest level in the past 12 months, driven by panic in the energy markets as crude oil prices surged to US$100 per barrel.
According to trading data from the Malaysia Derivatives Exchange, CPO prices touched 4,803 Malaysian ringgits per tonne today, representing the highest point in the last 12 months. This surge continued a rally in CPO prices over recent weeks. By 10:25 WIB, prices had risen 7.97 per cent from the previous session. CPO had closed at 4,367 Malaysian ringgits per tonne on Friday 6 March 2026.
Price Trend Strengthens Since Early 2026
Over the past three months, CPO prices have shown a notably strong upward trend. Throughout early 2026, prices moved in the range of 4,000-4,300 ringgits per tonne before surging higher in early March. This increase also reflects a recovery following a correction in late 2025. In December 2025, CPO prices had fallen to around 3,800 ringgits per tonne. A minor correction was also experienced in mid-January 2026 before gradually rising through the end of the month.
Historically, CPO prices over the past year have been quite volatile. In mid-2025, prices had fallen to around 3,700 ringgits per tonne before strengthening again in the second half of the year.
Middle Eastern Geopolitical Sentiment
Today’s surge in CPO prices is linked to escalating geopolitical tensions in the Middle East, which have triggered a sharp rise in global energy prices. The intensifying conflict between Iran, the United States, and Israel has increased market concerns about potential disruptions to the world oil supply.
The conflict has even triggered threats to close the Strait of Hormuz, a strategically vital shipping route through which approximately 20 per cent of the world’s oil supply passes. Disruptions on this route have directly shaken energy markets.
These conditions have pushed global oil prices sharply higher. According to Refinitiv data, Brent crude oil prices surged from approximately US$77.74 per barrel in early March to US$114.82 per barrel—a rise of nearly 48 per cent in less than two weeks.
Meanwhile, the US benchmark West Texas Intermediate (WTI) also strengthened, rising approximately 4.7 per cent over the same period.
This surge in energy prices has provided positive sentiment for biofuel-based commodities, including palm oil. With crude oil prices rising, the potential use of alternative energy sources, including palm oil biofuel, increases. The strengthening of global crude oil prices amid these geopolitical tensions has helped support the rise in CPO prices, which now reach their highest level in the past 12 months.