OIL prices remained elevated on Tuesday amid escalating geopolitical tensions in the Middle East and continued attacks on energy infrastructure in the Russia-Ukraine conflict, while a firmer US dollar added pressure on the Malaysian ringgit.
Brent crude futures stood at US$106.04 a barrel, while US West Texas Intermediate (WTI) traded at US$93.27, easing slightly after both benchmarks climbed nearly US$2 in the previous session.
Supply concerns have intensified following repeated missile and drone attacks by Yemen’s Iran-backed Houthi movement on Saudi Arabia, including strikes on King Khalid International Airport in Riyadh that killed at least 13 people and injured more than 300, according to reports.
The attacks have heightened fears of a broader regional escalation that could threaten energy supplies from Saudi Arabia, one of the world's largest oil producers, as well as shipping routes vital to global crude trade.
In Eastern Europe, Ukrainian President Volodymyr Zelenskyy has vowed to continue strikes against Russia as Moscow continues attacks on Ukrainian energy infrastructure, undermining prospects for an energy ceasefire announced by US President Donald Trump.
Trump's reported push to facilitate additional Russian diesel exports has offered some prospect of easing fuel supply tightness, although the immediate impact remains uncertain.
Meanwhile, the US dollar has benefited from safe-haven demand amid rising geopolitical risks and concerns over inflation ahead of key US consumer price data.
The US Dollar Index was around 102.54 on Tuesday, near its highest level since April 2025, after rising to 102.58 on Monday.
The dollar's strength comes as investors assess the US Federal Reserve's interest-rate outlook, with inflation risks fuelled by higher energy prices complicating expectations for monetary policy.
Against the ringgit, the US dollar traded at around RM4.087 on Tuesday, leaving the Malaysian currency vulnerable to renewed external pressure as global markets navigate geopolitical uncertainty.
A sustained rise in crude prices could increase Malaysia's import costs for petroleum products and add to inflationary pressures, although the impact on domestic fuel prices will also depend on government subsidy policies and other domestic factors. - October 13, 2026