Ringgit Weakens Amid Middle East Tensions and Rising Oil Prices

The Malaysian ringgit closed lower against the US dollar on Thursday due to heightened tensions in the Middle East.

Renewed attacks in the region have raised concerns over global oil supplies, leading to a surge in crude oil prices. The West Texas Intermediate (WTI) and Brent crude prices rose 3.19% and 4.23% to $89.60 per barrel and $98.05 per barrel, respectively.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, said the re-escalation of military attacks in the Middle East has elevated global oil supply concerns as the US-Iran peace negotiation looks increasingly fragile.

The surge in oil prices has also raised questions over how global central banks would respond to the oil price shock, with some jurisdictions potentially resorting to tighter monetary policy to contain inflationary pressures.