Wheat futures on the European exchange climbed on Friday to their highest level since August of last year. Traders indicated that surging oil prices provided a boost to the market, while investor concerns grew over potential supply disruptions stemming from Middle East conflicts. As of 17:11 GMT, May milling wheat on the European exchange rose by 2.7% to €207.50 per tonne (equivalent to $240.66). The contract reached an intraday high of €208.7 per tonne, marking the highest level since August 15 and surpassing the six-month peak set earlier in the week. Brent crude oil prices broke above $90 per barrel for the first time since April 20, 2024, lending support to grain markets. Further unsettling investors, Qatar's energy minister stated that if the conflict persists, he expects all Gulf energy producers to halt exports within weeks, which could push oil prices to $150 per barrel. Wheat is sensitive to crude oil prices partly because investment funds often take positions across multiple commodities, and also because crops like corn and other grains are used in biofuel production. Commenting on the rise in wheat prices, a futures broker noted, "There is capital flow from commodity funds at play, along with an indirect link to corn." Traders suggested that, similar to the market reaction last Friday when expectations of a U.S.-Iran conflict intensified, the price movement ahead of the weekend prompted participants to cover short positions. In the physical wheat market, traders reported that buyers remained largely quiet despite ample global supplies. Tunisia purchased 25,000 tonnes less wheat today than it had sought in its tender. This was interpreted by traders as war-related short covering activity. Another trader mentioned that an Egyptian buyer is seeking to purchase 30,000 tonnes of wheat with 11.5% protein content from the Black Sea region, at a cost of $253 per tonne including freight. The closure of the Strait of Hormuz has created logistical challenges for grain importers in Arab Gulf nations. Some traders are exploring alternative ports for unloading, such as those on the east coast of the UAE or in Oman. Meanwhile, wheat shipments from Saudi Arabia have been rerouted to Red Sea ports. Some blocked cargoes waiting outside the Strait of Hormuz are being offered for resale. A second trader indicated that most of these shipments are corn originally destined for Iran, though some wheat may also be seeking new buyers.