OIL prices extended their four-session decline on Tuesday as improving supply flows from the Middle East and renewed diplomatic efforts to end the US-Iran war eased concerns over prolonged disruptions.
Brent crude traded near US$100 a barrel, while crude oil was around US$92, as the market responded to signs that supplies through the Strait of Hormuz were continuing despite the conflict.
Saudi Arabia moved about 2.9 million barrels of crude a day through the Strait of Hormuz over the past six days, while satellite images showed supertankers with a combined capacity of about 14 million barrels at Saudi Arabia’s Gulf export terminals over the weekend.
The tanker count was the highest observed since at least June, indicating that oil flows were continuing despite the conflict.
US President Donald Trump is scheduled to address the United Nations General Assembly in New York later today and could meet Iranian President Masoud Pezeshkian on the sidelines.
Trump is also expected to hold discussions with other Gulf countries and Chinese President Xi Jinping this week.
The Trump administration has meanwhile proposed a US$5 billion fund to help rebuild infrastructure across the Middle East damaged by the war.
In currency markets, the US dollar strengthened amid expectations of a more hawkish Federal Reserve, with the dollar index rising 0.21% to 100.43 after reaching its highest level in almost three months.
The Federal Reserve raised the federal funds rate by 25 basis points last week and is expected to deliver another increase by year-end.
Chicago Fed President Goolsbee said he remained open to inflation resuming its decline towards the 2% target, but warned interest rates might need to rise if that failed to materialise.
Minneapolis Fed President Kashkari said inflation remained too high across all sectors of the economy rather than being driven solely by oil prices.
The stronger dollar pushed the euro down to US$1.1465 from US$1.1483 and the pound to US$1.3369 from US$1.3391. The US dollar also rose to 157.45 yen from 156.68 yen.
Against the ringgit, the US dollar was quoted at RM4.0771 on Tuesday, down 0.02% from the previous session. The ringgit has weakened 0.85% over the past month but remains 2.89% stronger over the past 12 months.
The euro traded at RM4.67703, up 0.05% from the previous session and 0.81% over the past four weeks.
For Malaysia, the combination of softer crude prices and a firmer US dollar presents mixed implications, with lower oil prices potentially easing energy-related cost pressures while a stronger US dollar increases the ringgit cost of dollar-denominated imports. - September 22, 2026
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