OIL prices eased on Monday but retained most of last week's gains as escalating hostilities in the Middle East and Eastern Europe heightened concerns over global supply disruptions, while the ringgit strengthened against the US dollar.
Brent crude fell below US$109 a barrel, while another crude oil benchmark traded at around US$101, after prices surged about 10% last week amid mounting geopolitical risks.
In the Middle East, clashes involving Saudi Arabia and Iran-backed Houthi rebels continued, with a Saudi helicopter crashing near the Yemeni border and the Houthis targeting Yanbu, a key Saudi oil export hub.
Supply concerns intensified after three tankers were damaged in the Strait of Hormuz over the weekend. Iran's Islamic Revolutionary Guard Corps navy maintained that the strategic waterway remained closed, with vessels allowed to pass only with its authorisation.
The strait is a critical route for global oil shipments, making any disruption a potential threat to supply and energy prices worldwide.
In Europe, Ukrainian attacks sparked fires at an oil export terminal and a storage depot in St Petersburg on Sunday, as Kyiv launched more than 1,000 drones at Russia in one of the largest aerial assaults of the war.
Meanwhile, US President Donald Trump said he had reached an agreement with Russia on diesel exports and postponed additional sanctions to avoid jeopardising peace negotiations over Ukraine.
On the foreign exchange market, the ringgit strengthened 0.10% against the US dollar to 4.0800 on Monday, from the previous session.
However, the Malaysian currency was little changed over the past month, weakening 0.05% against the greenback, although it remained 3.45% stronger than a year earlier.
The US Dollar Index, which measures the greenback against a basket of major currencies, traded at around 101.84, broadly unchanged from the previous session. It had gained about 1.4% over the past month and 3.3% over the past year.
For Malaysia, sustained oil supply disruptions could increase fuel and transportation costs and add to inflationary pressures, although the impact on domestic pump prices would depend on global price movements, government subsidy arrangements and subsequent fuel-price adjustments.
The ringgit's modest daily gain could provide some relief on the cost of imported goods priced in US dollars, but currency movements alone would not offset the effects of a prolonged surge in global energy prices. - October 19, 2026