Iran War’s Energy Shock Is Spreading to Crop-Based Fuels Another corner of the energy market is being threatened by the war in Iran, as prices for methanol — essential to biofuel production — surge in Southeast Asia. The spike risks crimping output of crop-based fuels and adding to the region’s energy crunch. Indonesia is the world’s biggest producer of palm oil, a large portion of which is converted into biodiesel to meet the country’s steep blending targets. Methanol is key to that process, helping to break down the crop and convert it into fuel. However, prices for the alcohol have climbed as ship traffic grinds to a near halt amid the US-Israeli attacks in Iran, crimping vital commodity shipments — much of which often head to Asia. QatarEnergy last week said it would halt production of downstream products including methanol after the closure of its massive liquefied natural gas plant. (Bloomberg)