00:00Now, the conflict we've run continues to rattle global markets and drive sharp swings in oil prices.
00:07And while this is a global crisis, the impact is not being felt evenly.
00:11Our correspondent, Fei Kuan, joins us now with more.
00:14Fei, who's feeling the pressure most?
00:17Well, Farhana, oil prices, as we've been hearing now, have been surging in the last four weeks.
00:23It's dominating all the headlines.
00:25And since the conflict began on February 28th, the global energy market has entered what's being described as its most
00:32volatile period since the 1970s.
00:34Now, Iran is allowing non-hostile ships to pass.
00:37But as we see what was the normal shipping lane now, the vessels that are being allowed to pass through
00:43are taking an alternative route,
00:44as seen with this green arrow over here that's closer to Iran's coast, allowing it to monitor these ships easily.
00:52Now, flows remain constrained, and it's really Asia that's feeling it the most.
00:57We know now that a fifth of the world's oil passes through the Strait of Hormuz.
01:02And if we see from this chart here, Asia is the biggest buyer of that.
01:08So in 2025, the region imported nearly 15 million barrels a day through these waters.
01:14We see over here, that's about 60% of its total supply.
01:18Of course, some countries are more dependent than others.
01:21We see here with this chart of top buyers of Middle East crude oil in Asia.
01:26China and India, of course, are the big buyers.
01:30But there's also Japan, which gets about 95% of its oil from the Middle East, as well as South
01:35Korea, with 70%.
01:38Now, clearly, Asia is bearing the brunt of the shock.
01:42But why is the impact uneven across Asia?
01:44And why can't countries simply pivot to other sources?
01:48Well, with shipping at risk, prices really have jumped sharply.
01:53So firstly, we have to address the fact that what's impacting our wallets is really different.
01:59It's impacting our wallets differently around the continent in Asia.
02:02We see here, it's not listed here, but Vietnam and the Philippines is really among the hardest hit
02:07because they lack long-term supply of reserves, with people absorbing the shocks at the pump.
02:12Then there is Malaysia over here.
02:15Prime Minister Datuk Sri Anwar Ibrahim has said that nearly 50% of our supply passes through the Strait of
02:21Hormuz.
02:22And while the country produces oil, it still imports more than it exports.
02:26Now, the government has already increased fuel subsidies, spending over RM3 billion to keep prices the same,
02:34compared to RM700 million a month ago.
02:37And they've promised to keep RON95 fixed at RM1.99 at least through May.
02:42But the subsidized market price has already hit RM3.87.
02:48As for why countries can't pivot quickly, your question, well, it's really a structural issue.
02:53Our refineries are built specifically for Middle Eastern sour crude.
02:57So that's oil with higher sulfur impurities.
03:00Switching supply is possible, but it's not quick or easy, especially with a global crisis as what we're seeing now.
03:07So even beyond Malaysia, governments across the region are scrambling to mitigate these oil shocks for HANA.
03:13We're seeing energy-saving campaigns in South Korea.
03:16To Sri Lanka, that's imposing a four-day work week.
03:19So for now, Asia really remains highly exposed to what happens in the Middle East.
03:25Right. Thank you, Faye.
03:27We'll be sure to look out for further developments.
03:30Right now, we'll go for a quick break.
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