Brent Crude Surges Past $102 Amid Escalating Mideast Tensions
Malaysia is facing renewed pressure on fuel costs and inflation as Brent crude prices surge past US$100 a barrel. The latest oil rally came after the United States weighed sending another aircraft carrier and up to 10,000 additional sailors and Marines to the Middle East, raising concerns that the conflict with Iran could escalate and further disrupt regional energy supplies.
US President Donald Trump has reportedly told aides that he expects to resume bombing Iran after the November midterm elections. This development comes despite Middle Eastern crude flows having largely recovered to pre-war levels, but concerns remain over the sustainability of those flows.
The Strait of Hormuz tanker attacks this week have added to the worries, with at least three tankers being attacked while transiting the waterway. Brent crude traded above US$102 a barrel on Friday after gaining for two consecutive sessions, while US West Texas Intermediate (WTI) traded around US$93.
The weaker ringgit against the US dollar also adds pressure as oil is predominantly traded in US dollars. The US Dollar Index rose to around 102 on Friday, its highest level since March 2025, making imports even more expensive for Malaysia.