OIL prices rebounded sharply on Thursday as Houthi missile attacks on Saudi Arabia revived fears of further supply disruptions, although reports of possible US-Iran discussions on reopening the Strait of Hormuz capped the rally.
Brent crude futures rose US$3.52, or 3.4%, to settle at US$106.60 a barrel, while US West Texas Intermediate (WTI) crude gained US$2.45, or 2.7%, to US$94.61.
Both benchmarks had risen about 5% at their session highs before paring gains as reports emerged that Washington and Tehran were discussing a possible reopening of the Strait of Hormuz.
Saudi Arabia said it had intercepted six ballistic missiles launched by Yemen’s Iran-aligned Houthi militants towards areas including Taif and Yanbu, reviving concerns over the security of Saudi oil infrastructure and export routes.
The latest gains came after several sessions of declines, with WTI having fallen about 13% over the previous six sessions. Brent’s settlement was its highest since Sept 15.
Reports that the United States and Iran were considering steps that could facilitate the reopening of the Strait of Hormuz provided some relief to markets, although there was little indication of a firm diplomatic breakthrough.
Iran has maintained that reopening the strategic waterway would depend on the United States easing military pressure and lifting its blockade, while Washington has indicated that President Donald Trump remains open to talks.
The conflicting signals have kept oil markets highly sensitive to developments in the Middle East, with the security of Gulf supply routes remaining a key source of price volatility.
The US dollar also remained firm, with the Dollar Index trading around 101.26 on Thursday, extending a recent run of gains as markets increased bets on further US monetary tightening.
Higher energy prices could add to inflationary pressure, particularly with US diesel prices at record levels, while expectations of another Federal Reserve rate increase have provided additional support for the US currency.
For Malaysia, the ringgit was trading at around 4.0777 to the US dollar on Friday, according to the supplied market data. Bank Negara Malaysia’s official reference rate was 4.0839 on Thursday.
The combination of elevated oil prices and a weaker ringgit could increase pressure on Malaysia’s import costs, although the impact on domestic fuel prices will also depend on global refined-product prices, exchange rates and the Government’s subsidy framework.
Oil markets remain focused on whether diplomatic efforts between Washington and Tehran can ease restrictions around the Strait of Hormuz, while further attacks on Saudi infrastructure or shipping routes could renew concerns over global supply. - September 25, 2026
