Weak demand from Iran puts pressure on palm oil sector, expert says
In Ukraine, UkrAgroConsult reported that palm oil is among the sectors hardest hit by ongoing geopolitical tensions in the Middle East, primarily due to weakening demand from Iran, according to Datuk Seri Rizal Merican Naina Merican, Chairman of the Malaysia External Trade Development Corporation (Matrade).
During a recent media briefing, he reported that palm oil and palm oil-based product exports to Iran fell 86.1% year-on-year to $22.7 million in the first quarter of 2026. Palm oil and palm oil-based products accounted for 62.4% of Malaysia’s total exports to Iran during this period, according to the report.
Besides palm oil, Rizal Merican noted that petroleum product and agricultural exports have also been affected by the ongoing tensions. He added that disruptions in fertilizer supplies—an estimated 30% of global supply comes from the Middle East—are impacting the agricultural sector.
Category: Food & Agriculture
