World sugar prices stabilized on Monday after a sharp decline to their lowest level in nearly two months, triggered by news that the United States and Iran reached an initial agreement to end their conflict and reopen the Strait of Hormuz to traffic. The agreement caused energy prices to fall sharply, making it more economically viable for cane mills to increase sweetener production and reduce bio‑fuel ethanol output. Raw sugar futures on the ICE exchange fell to 13.61 cents per pound, the lowest point since late April, before recovering slightly to 13.72 cents per pound, a 0.2% rise, by 15:39 GMT. White sugar futures declined 0.3% to $443 per metric ton. Broker and consultant Michael McDougall noted that raw sugar could receive initial support if the U.S.–Iran agreement remains in place, driven by higher demand from Gulf sugar refineries that were previously unable to operate normally. These same factors are expected to put downward pressure on white sugar prices as Gulf refiners gain capacity to increase sweetener production if the deal continues to hold. The article was generated with AI assistance and reviewed by an editor.