Oil Price Surge Triggers Caution in Malaysian Markets

Malaysian stocks closed flat on Wednesday as investors remained cautious amid escalating Middle East tensions and rising crude oil prices. The FTSE Bursa Malaysia KLCI Index (.KLSE.MY) edged marginally lower to 1,714.34, with market breadth mixed at 551 gainers versus 531 losers and 591 unchanged counters.

The global oil markets surged as Brent crude breached the US$100-per-barrel mark for the first time since July, driven by intensifying US-Iran conflict following ballistic missile attacks. The escalation heightened concerns over regional oil supply disruptions, with potential implications for Malaysia's inflation outlook and import costs.

The US 10-Year Treasury Notes Yield (US10Y.BD) surged to a 4.857% session high, its loftiest level since November 2023, after the Treasury's $6 billion bond buyback failed to ease rate pressures.