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Rich Asplund

Coffee Prices Climb as Iran War Raises Global Supply Concerns

Ice Iran BI Ayatollah Mojtaba Khamenei Arabica Brazil FAs Strait of Hormuz Vietnam

May arabica coffee (KCK26) today is up by +6.75 (+2.35%), and May ICE robusta coffee (RMK26) is up by +82 (+2.31%).

Coffee prices are climbing today due to the Iran war, which has closed the Strait of Hormuz and disrupted global shipping. Iran’s Supreme Leader Ayatollah Mojtaba Khamenei said today that Iran’s leverage of closing the Strait of Hormuz should be used, and UK Defense Secretary Healey said it is increasingly evident that Iran is laying mines in the Strait of Hormuz. The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs for coffee importers and roasters.

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