Round-the-clock breaking news from Malaysia.
Oil prices fell sharply as fighting between the US and Iran paused, raising hopes for negotiations. However, both sides remain far apart on key issues affecting global energy supplies through critical Middle Eastern waterways.
Malaysia's stock market retreated as crude oil surged past US$100 per barrel amid Middle East tensions, prompting investors to abandon equities. The FBM KLCI fell to a 10-day low despite gains in energy-linked counters.
The FBM KLCI gained 3.01 points to 1,714.38 at the opening as Brent crude surged past US$95 a barrel, benefiting energy stocks. However, weakness in global tech and inflation concerns tempered the rebound.
Oil prices jumped on Friday as military confrontations between the US and Iran intensified across the Persian Gulf, with Tehran preparing its Houthi allies to potentially seal off the Red Sea shipping corridor.
Southeast Asia is poised for a 12 per cent increase in new offshore energy projects to exceed US$100 billion, signalling resilience despite lingering West Asian tensions. Investment analysts expect price stability around US$70-75 per barrel will benefit regional businesses.
Financial analysts expect Bank Negara Malaysia to maintain its overnight policy rate at 2.75% this week, as declining global oil prices and the BUDI Diesel programme help reduce inflation pressures across the economy.