OIL prices eased on Friday as US President Donald Trump’s remarks on possible progress with Iran offered temporary relief to markets, although the threat of military escalation and disruptions to crude shipments through the Strait of Hormuz continued to cloud the outlook.
Brent crude fell below US$104 a barrel, while West Texas Intermediate (WTI) crude slipped towards US$91, reversing part of Thursday’s rally, when prices surged by as much as 5.7% and 5.6%, respectively.
Trump said Washington was engaged in “productive discussions” with Tehran and would refrain from attacking Iran before the US midterm elections.
He also claimed record volumes of crude were passing through the Strait of Hormuz, while insisting that the US naval blockade of Iranian ports would remain fully in place.
However, reports that Washington had prepared plans for three days of strikes targeting Iranian drone and missile stockpiles, energy infrastructure and other sites highlighted the risk of renewed escalation.
The uncertainty was compounded by intensified Iranian attacks on tankers navigating the Strait of Hormuz, with nine vessels reportedly targeted over the past week, raising concerns over the security of a critical route for global oil shipments.
Separately, Hurricane Isaias threatened offshore oil production in the Gulf of Mexico, prompting producers to shut in about 1.3 million barrels per day of crude output and adding to concerns over supply availability.
In currency markets, the US dollar remained supported by expectations that the Federal Reserve would keep interest rates elevated for longer as higher energy prices threatened to sustain inflationary pressures.
The US dollar index traded around 102.2 on Thursday, near its highest level since April 2025. Minutes from the Fed’s September meeting indicated that most policymakers expected another rate increase this year, although the timing remained uncertain.
Fed Governor Christopher Waller said further rate hikes would likely be necessary to bring inflation back to target, while noting there was “flexibility” over the pace of increases.
Markets were pricing in an approximately 78% probability that the Fed would leave rates unchanged in October, while the likelihood of a 25-basis-point increase in December stood at about 69%.
The US dollar traded at RM4.0915 against the ringgit on Friday, up 0.01% from the previous session, while another market reading put the exchange rate at RM4.0900, down 0.06%.
Despite the slight daily movements, the ringgit had weakened by about 0.6% against the greenback over the past month, although it remained around 3.2% stronger than a year earlier.
For Malaysia, the combination of volatile oil prices and a firm US dollar leaves markets exposed to competing pressures, with geopolitical developments threatening energy supply while expectations of tighter US monetary policy continue to influence currency movements. - October 9, 2026
