Wheat futures climbed to their highest level in nearly two years as the Middle East conflict drove up oil and fertilizer costs. Chicago wheat futures rose 1.1% to $6.24 a bushel in European trading, after briefly touching $6.41 earlier in the session. The commodity is now up nearly 5% since the conflict began, with prices on track to reach their highest point since June 2024.

Rising oil prices typically increase transportation and production costs for agricultural commodities, while higher fertilizer prices directly impact crop yields and farming expenses. The Middle East escalation has created a perfect storm for commodity markets, with investors rushing to secure positions in agricultural futures. Wheat's surge reflects broader market concerns about supply chain disruptions and inflationary pressures in the agricultural sector.

The price spike could have significant implications for food manufacturers, retailers, and consumers. Higher wheat prices often translate to increased costs for bread, pasta, and other staple foods. With the conflict showing no signs of abating, market participants are bracing for continued volatility in agricultural commodities as geopolitical tensions reshape global trade flows.