International News 07 May 2026
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Palm Oil Rally Expected to Continue Amid Rising Biodiesel Demand
Malaysian palm oil prices are expected to rise by around 12% to 5,200 ringgit ($1,316) per metric ton by mid-July. Analyst Dorab Mistry noted that the increase is driven by higher energy prices resulting from the US–Israel conflict involving Iran, which has boosted biodiesel demand and tightened overall supply. Citing Reuters, benchmark palm oil futures on the Bursa Malaysia Derivatives Exchange fell 1.34% to 4,647 ringgit during the midday break on Wednesday, although they have gained roughly 15% since the conflict began in late February. Prices are projected to climb further to around 5,000 ringgit in June and potentially reach 5,200 ringgit by mid-July, supported by sustained biodiesel demand, according to Mistry, director at Indian consumer goods firm Godrej International.
The United States and Iran Move Closer to Ending Gulf War, Global Oil Prices Plunge
The United States and Iran are reportedly moving closer to reaching an agreement to end tensions in the Gulf region. A source from Pakistan, which has been acting as a mediator, stated that both sides are currently finalizing a one-page memorandum outlining the key points for a ceasefire. The source confirmed earlier reports by U.S. media outlet Axios, which cited officials and insiders familiar with the negotiations. “We are close to finalizing this. Progress has been significant,” the Pakistani source said. Pakistan previously hosted the only round of peace talks last month and has continued to play a mediating role by relaying proposals between the two parties.
US Fuel Prices Hit $4.50 per Gallon as Iran Conflict Disrupts Global Supply
The average national gasoline price in the United States rose to $4.50 per gallon on Tuesday, marking its highest level since July 2022. According to data from GasBuddy, the surge comes amid disruptions to global oil supply caused by the ongoing conflict involving the U.S. and Israel against Iran. Rising tensions in the Middle East, particularly around the Strait of Hormuz, have significantly hindered large-scale oil shipments. This critical maritime route typically handles around 20% of the world’s daily oil supply before the conflict escalated. The spike in fuel prices comes just ahead of the Memorial Day holiday, which signals the start of the peak summer travel season in the U.S. The situation also presents a political challenge for President Donald Trump and the Republican Party as they approach the midterm elections in November.