00:01Rising tensions in West Asia have pushed global oil prices higher, drawing renewed attention to the Strait of Hormuz, a
00:08vital gateway to international markets.
00:12Estimates from the U.S. Energy Information Administration show about 20 million barrels of oil and refined products passed through
00:20the strait daily last year, along with around 20% of liquefied natural gas supply.
00:25Benjamin Barton, head of the School of Politics, International Relations and Economics at the University of Nottingham, Malaysia, said the
00:34situation does not amount to a complete shutdown as some oil and gas shipments are still being allowed through, though
00:40under heightened risk.
00:41Despite a coordinated release of 400 million barrels by 32 countries from strategic reserves, global oil prices have remained elevated,
00:51with Brent crude hovering at around 100 U.S. dollars a barrel, about 30 U.S. dollars higher than pre
00:57-conflict levels.
00:58Barton said the impact is already being felt across economies, extending beyond fuel prices, with higher energy costs likely to
01:07filter through supply chains, affecting everything from manufacturing to essential goods.
01:12Shipping and insurance costs have also risen as vessels face increased risks navigating the region, with these additional costs often
01:21passed on to consumers.
01:22Although Prime Minister Anwar Ibrahim said Malaysia has enough petroleum to last until May 2026, rising fuel prices mean belt
01:31tightening at both the fiscal and household level now appears unavoidable.
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