Malaysia ended last week with seven oil tankers en route via the Strait of Hormuz and a government promise that supplies would last through May. Then US President Donald Trump announced a blockade.
Analysts say the escalation in the US-Israel war on Iran puts Malaysia on a collision course with an energy crisis sooner than expected.
“Putrajaya has already flagged June as a critical pressure point,” said geopolitical risk consultant Asrul Sani, associate vice-president of The Asia Group. “This development brings that timeline forward.”
The price of Brent crude surged to around US$103 a barrel when markets opened on Monday, hours after Trump declared the blockade following the collapse of peace talks with Iran at the weekend.
Trump announces US blockade of Strait of Hormuz, warns Iranians of being ‘blown to hell’
Trump announces US blockade of Strait of Hormuz, warns Iranians of being ‘blown to hell’
“If shipments are delayed or disrupted, Malaysia may need to buy energy on the open market at short notice, often at significantly higher prices,” Asrul said.