The ongoing conflict between the United States and Iran has already started reshaping global commodity markets. Energy prices have experienced extreme volatility since the war began in late February 2026.
Global benchmark Brent crude briefly surged close to $120 per barrel, the highest level in several years, before falling sharply toward the $80–90 range as markets reacted to shifting military developments and diplomatic signals.
For dealers in India dealing with edible oils, DORB, DOC and DDGS, this geopolitical shock is not just an energy story — it directly influences the economics of the entire oilseed and feed complex.

Why the Strait of Hormuz Matters
The biggest concern in this conflict is disruption to the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Roughly 20% of the world’s oil supply passes through this narrow channel, and tanker traffic has already been disrupted due to attacks and military tensions in the region.
When markets fear a disruption to this route, crude oil prices spike rapidly because global supply chains suddenly look fragile.
That is exactly what happened in early March when oil prices surged above $100 and briefly touched $119 per barrel before retreating as traders reassessed the situation.

The Link Between Crude Oil and Edible Oils
For many people, oil prices and edible oils seem unrelated, but in commodity markets they are tightly connected.
When crude oil rises sharply, two things happen:
Biodiesel demand increases
Higher crude oil prices make biodiesel more competitive. Countries such as the United States, Brazil, and Indonesia increase the use of vegetable oils for biofuel blending.
Vegetable oil prices rise globally
Increased biodiesel demand pushes up prices of soybean oil, palm oil and other edible oils.
Since India imports nearly 60% of its edible oil requirement, global price spikes directly impact domestic markets.

Impact on Oilseed Crushing and By-Products
When edible oil prices rise, oil mills often increase crushing activity because higher oil prices improve processing margins.
This leads to greater production of by-products such as:
Soybean DOC
Mustard DOC
De-oiled rice bran (DORB)
In the short term, increased crushing can increase supply of these feed ingredients. However, the situation quickly changes if raw material prices rise sharply.
For example:
Higher soybean prices increase DOC costs
Higher rice bran prices increase DORB costs
Eventually, feed manufacturers face rising input prices.

What It Means for DORB and Feed Markets
For cattle and poultry feed manufacturers in India, DORB is one of the most widely used protein ingredients.
Global energy shocks affect DORB markets through several channels:
1. Oilseed inflation
If edible oil prices rise globally, oilseed prices also move higher, increasing production costs for DORB.
2. Export pull for protein meals
When global protein meal markets strengthen, Indian DOC exports increase, tightening domestic supply.
3. Feed substitution dynamics
If soybean DOC becomes expensive, feed manufacturers often increase usage of DORB or DDGS as alternative protein sources.

The Role of DDGS
Distillers dried grains with solubles (DDGS), a by-product of ethanol production, also becomes important during periods of volatility.
When energy prices rise, ethanol production economics change. This can increase DDGS availability in the market, making it a competitive feed ingredient compared to oilseed meals.
However, if grain prices rise alongside energy prices, DDGS prices may also strengthen.

The US–Iran war is not just a geopolitical event — it is a major macro driver for commodity markets.
Extreme volatility in crude oil prices is already influencing global edible oil markets, which in turn affects oilseed crushing, feed ingredient supply and pricing for products such as DORB, DOC and DDGS in India.
For traders and feed manufacturers, monitoring energy markets has now become essential for anticipating movements in feed raw materials.
In today’s interconnected commodity markets, geopolitics, energy and agriculture move together more closely than ever before.