Closure of Strait of Hormuz Impacts 6% of Global Sugar Trade

22-Apr-2026 05:58 PM

San Diego. Amidst the tense situation in West Asia and the closure of the Strait of Hormuz, the import and export of sugar—along with other commodities—are being adversely affected.

Countries in the Gulf region import large quantities of raw sugar from Brazil, India, Thailand, Australia, and the European Union, which they subsequently refine to produce white, refined sugar. Some countries also import refined sugar directly from abroad.

However, the closure of the Strait of Hormuz is currently impacting 6 percent of the world's sugar trade. This situation has exacerbated difficulties for sugar refining units located in Middle Eastern nations.

Sugar prices on the New York Exchange had been under pressure for the past three weeks; on April 17, the futures price for the nearest-delivery contract plummeted to its lowest level in approximately five and a half years. Subsequently, however, prices began to show signs of gradual recovery.

Sugar production in the Center-South region of Brazil is projected to reach 40.25 million tonnes during the 2025–26 season, with the nationwide output estimated at 44.196 million tonnes; conversely, production is expected to decline during the upcoming 2026–27 season. This outlook suggests a likelihood of some improvement in global sugar market prices.