Gotrade News - Global crude oil prices soared nearly 2% as the conflict involving the United States and Israel against Iran enters its third week. This situation is critical as it elevates risks to global energy infrastructure and potentially closes the Strait of Hormuz, a vital conduit for 20% of the world's oil supply.
Key Takeaways:
- Brent crude prices rose by 1.95% to US$ 105.15 per barrel.
- Middle East tensions could further inflate oil prices.
- Malaysia spends Rp 8 trillion monthly on fuel subsidies.
This surge in oil prices directly impacts the global economy. Brent rose US$ 2.01 to US$ 105.15 per barrel, while WTI increased by US$ 1.61 to US$ 100.32 per barrel. The conflict has prompted Iran to halt shipments through the Strait of Hormuz, adding strain to the oil market.
Moreover, reports indicate that Iranian drones attacked an oil terminal in Fujairah, United Arab Emirates. Although oil loading activities have resumed, uncertainty lingers, especially regarding crude oil supply connected to Fujairah.
On another front, Malaysia is grappling with global energy price pressures by allocating substantial subsidies. Prime Minister Anwar Ibrahim stated that the government spends about Rp 8 trillion a month to maintain the price of RON 95 gasoline in Malaysia.
Anwar explained that fuel subsidies are a crucial measure during these tense geopolitical times. With oil prices reaching US$ 104 per barrel, the role of subsidies is vital to prevent worsening inflation burdens on the Malaysian people.
Malaysia's focus extends beyond RON 95, also monitoring diesel subsidies in Sabah and Sarawak, amounting to 4.6 billion ringgit this year. The government continues to monitor potential subsidy misuse to ensure they reach their intended targets.
The International Energy Agency (IEA) has also responded to the conflict by releasing over 400 million barrels of oil reserves to the market. This move aims to mitigate potential further price hikes due to Middle Eastern tensions.
Overall, despite efforts to stabilize prices, geopolitical risks remain a primary threat heavily burdening the current global energy market conditions.
Reference:
- Berita Satu, Harga Minyak Mentah Hari Ini Naik Nyaris 2 Persen ke US$ 105. Accessed on March 16, 2026
- Kompas, Malaysia Rogoh Rp 8 Triliun per Bulan demi Pertahankan Harga BBM. Accessed on March 16, 2026
- Kumparan, Harga Komoditas: Minyak Mentah dan CPO Naik, Batu Bara-Timah Kompak Melemah. Accessed on March 16, 2026
Featured Image: GPT Image 1.5
