GLOBAL oil prices retreated on Monday after recent gains, although the threat of renewed military action involving Iran continued to cloud the outlook for energy supplies and keep markets on edge.
Crude oil fell towards US$102 a barrel, while Brent crude slipped below US$116, despite concerns that strikes against Iran could resume amid escalating regional tensions.
US President Donald Trump said on Sunday he would soon decide whether to pursue a deal with Tehran or restart military operations, as threats involving Iran and Yemen’s Houthi rebels continued to raise concerns over regional security.
Iran was reportedly preparing to retaliate, potentially targeting Israel and the United Arab Emirates, while clashes between Saudi Arabia and the Houthis intensified over the weekend.
The Houthis claimed to have targeted King Khalid International Airport in Riyadh in response to Saudi strikes on Sanaa and other parts of Yemen on Saturday.
Despite the tensions, Middle Eastern crude exports have recovered to near pre-war levels. However, any renewed escalation could disrupt regional energy supplies and trigger further volatility in oil prices.
In currency markets, the US dollar index was trading around 101.69 on Monday, down about 0.12% from the previous session. The index has lost about 0.5% over the past month but gained nearly 3% over the past year.
Against the ringgit, the US dollar was quoted at around RM4.0855 on Monday, broadly unchanged from the previous session. The exchange rate has remained largely stable over the past month, while the ringgit has strengthened about 3.28% against the greenback over the past year.
For Malaysia, movements in crude prices and the ringgit remain important to the domestic fuel-price outlook, given the country’s exposure to global energy markets.
Higher oil prices could increase costs for fuel imports and businesses, although the overall impact depends on Malaysia’s position as both an oil producer and consumer, as well as government subsidy policies and exchange-rate movements. - October 26, 2026
