The closure of the Strait of Hormuz in February 2026 has triggered a sharp rise in global oil prices, pushing Brent crude from $70 to as much as $120 per barrel. With more than 20 million barrels of oil passing through the strait daily, the disruption renewed concerns about global energy security. According to the World Bank, global energy prices are expected to rise by 24% in 2026, marking the biggest increase since 2022.
As fossil fuel prices surge, governments and industries are accelerating interest in biofuels as a more stable and accessible energy alternative. Analysts say countries increasingly view energy security and biofuels as closely linked, especially as corn — a key biofuel ingredient — has risen only 5% in price compared to oil’s 30–55% jump. In addition to climate goals, the availability of feedstocks such as used cooking oil, animal fats, and organic waste is strengthening the appeal of biofuel production.
Several countries have already expanded biofuel mandates in response to the crisis. The United States approved a record biodiesel blending target of 5.4 billion gallons for 2026, while Indonesia is increasing its palm biodiesel mix to 50% under its B50 program. Malaysia plans to move from B10 to B15 by June 2026, Vietnam accelerated its ethanol gasoline rollout, and Brazil aims to raise ethanol content in gasoline from 27% to 35% by 2030. Industry experts say the race is now focused on which countries can build biofuel recycling and processing chains the fastest.
Read more news here