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Agriculture traders rushed to adjust positions with the escalating conflict in Iran threatening to disrupt supply chains from corn and soybean meal to fertilizer and sugar.

Some carriers are canceling bookings temporarily, skipping some port calls, warning of delays and implementing surcharges to transport containers through the conflict zone. 

“It’s the rockets and feathers effect,” said Christopher Knittel, professor of energy economics at the Massachusetts Institute of Technology. “When things are going up — they go up fast.”

Soy rose to its highest level in more than two years after strikes by the U.S. and Israel on Iran. Contracts in Chicago surged as much as 3.9% before paring some gains.

The most immediate impact from the escalating Middle East conflict is through market reaction as investors take flight to safe havens such as the dollar and gold, while stocks slump.

Runaway freight is one of the most tangible market responses to a conflict that began on Feb. 28 and culminated with the vital Strait of Hormuz choke point all-but closing to tanker traffic.

Halliburton is ready to quickly restart operations in Venezuela once it obtains U.S. government approval and some sort of payment protections, CEO Jeff Miller said.

U.S. crude production fell to near 13.7 million barrels a day in December, the lowest in six months, according to a monthly report from the Energy Information Administration.

It's the first complaint filed by the U.S. to start the legal process to formally take control of one of at least 10 oil tankers intercepted by American authorities since late last year.

The U.S. oil giant signed preliminary agreements to negotiate terms and exchange confidential data with state-owned Basra Oil over the West Qurna 2 field, Chevron said in a statement.