RISING global oil prices threaten to add pressure to Malaysia's fuel, transport and business costs as renewed attacks on Saudi targets and reports of possible further US-Israeli strikes against Iran heighten concerns over energy supplies.
Brent crude traded around US$113 a barrel on Friday, near its highest level in more than five months, while US West Texas Intermediate (WTI) hovered around US$99 as markets weighed escalating geopolitical risks against signs that crude exports from the Persian Gulf were recovering towards prewar levels.
Iran-backed Houthi militants in Yemen claimed responsibility for recent attacks on Saudi targets, including the Red Sea port of Yanbu, adding to concerns over potential disruptions to regional oil infrastructure and shipping routes.
Reports that the United States and Israel had drawn up plans for possible renewed strikes against Iran, with energy infrastructure potentially among the targets, further heightened market uncertainty.
Despite the tensions and threats to shipping through the Strait of Hormuz, crude exports from the Persian Gulf have reportedly rebounded close to prewar levels, suggesting that the supply outlook remains more complex than the geopolitical risks alone indicate.
For Malaysia, sustained high oil prices could increase costs across transport, logistics and other energy-intensive industries, with the eventual impact on consumers depending partly on domestic fuel pricing and subsidy arrangements.
Higher crude prices could also support revenue from Malaysia's oil and gas sector, although the wider economic benefit would depend on production, government revenue arrangements and the extent to which higher energy costs weigh on domestic demand.
Meanwhile, the ringgit edged up 0.04 per cent to 4.0810 against the US dollar on Friday, according to the supplied market data.
The local currency has strengthened 0.10 per cent over the past four weeks and 3.39 per cent over the past 12 months, offering some support against dollar-denominated imports.
The US Dollar Index stood at 101.516, down 0.13 per cent from the previous session, as investors weighed geopolitical uncertainty, concerns over technology-sector earnings and expectations ahead of next week's US Federal Reserve policy decision.
However, the ringgit's modest daily gain may provide only limited relief if crude prices remain elevated for an extended period. - October 23, 2026