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Oil prices surged over 1% as diplomatic tensions between the US and Iran intensified. President Trump's demand for Iranian compensation over war damages has derailed peace negotiations, threatening prospects for reopening the critical Strait of Hormuz and potentially prolonging supply disruptions.
Crude prices gained modestly as attacks on shipping and US-Iran diplomatic deadlock sustain regional supply concerns, though demand forecasts for 2026 were cut sharply, capping upward momentum.
US stock markets scaled new heights as perceived de-escalation in Iran tensions sent crude oil prices down 5%, reducing pressure on Treasury yields. The Dow closed at a record high amid strong corporate earnings.
Oil prices fell about 5% to their lowest levels in two weeks following a temporary halt in hostilities between the United States and Iran. Brent crude dropped to US$84.09 per barrel while WTI fell to US$79.26, reflecting cautious market optimism.
Malaysia's stock market retreated to 10-day lows as crude oil prices jumped above $100 a barrel amid Middle East tensions, prompting investors to exit risk assets despite energy stocks finding support.
The US dollar has climbed to near a 39-year high against the Japanese yen, trading above 163 yen despite Japan's warning it will intervene if needed. Safe-haven demand amid Middle East tensions and rising crude oil prices are driving the surge.
Bursa Malaysia edged higher in muted trading as surging oil prices and Middle East tensions offset concerns about technology sector spending discipline. The FBM KLCI gained just 3.01 points to 1,714.38.
Malaysia's FBM KLCI fell 0.23% to 1,716.43 points on Wednesday as investors dumped banking and plantation shares despite overnight gains on Wall Street, with crude price escalation and US-Iran tensions keeping markets on edge.
Malaysia's FBM KLCI climbed on renewed energy sector strength as crude oil prices surged following Iran's attack on tankers in the Straits of Hormuz, with PETRONAS Chemicals and major banks leading the advance.
Crude oil prices jumped Friday as US and Iranian military operations intensified across the Gulf region, with Tehran reportedly instructing Houthi forces to prepare for a potential Red Sea blockade that could severely disrupt global energy supplies.
Malaysia's Deputy Finance Minister has indicated that fiscal projections for Budget 2027 will not be adjusted at this stage, despite elevated subsidy costs driven by soaring crude oil prices in the wake of regional tensions.
Renewed Middle East conflict sent oil prices climbing 4% on Monday, triggering currency weakness across emerging Asia and a dramatic 8% plunge in South Korea's KOSPI index, with regional markets grappling with fresh inflation concerns.