CRUDE oil prices rebounded towards US$90 a barrel on Wednesday as renewed risks to energy flows through the Middle East outweighed signs that regional supply was recovering, while a softer US dollar provided some support to commodities.
Brent crude climbed to around US$101 a barrel, extending gains from the previous session, after Iran intensified attacks on tankers in the Strait of Hormuz. The UK Maritime Trade Operations has reported nine incidents in the strait so far this month.
A Saudi-led coalition also said it had intercepted and destroyed a ballistic missile launched by Yemen's Houthi forces towards Khamis Mushait in Saudi Arabia.
Despite the latest escalation, oil prices remained lower for the week as crude flows from the Persian Gulf showed signs of recovery.
Tankers have continued to pass through the Strait of Hormuz despite the heightened risks, while Saudi Arabia's East-West oil pipeline has restored crude pumping capacity to 5.8 million barrels per day.
In the United States, industry data showed crude inventories fell by 2.1 million barrels last week, with official inventory figures due later on Wednesday.
The US dollar also weakened, with the Dollar Index falling 0.28% to 101.885 on Tuesday. It has declined 2.73% over the past four weeks, although it remains 3.35% higher than a year ago.
The weaker dollar was partly attributed to easing concerns over elevated energy prices and the likelihood of further monetary tightening. Signs of recovering Middle East crude exports have helped push oil prices lower from recent highs, easing concerns over inflation and reducing expectations of an immediate increase in US interest rates.
The Federal Reserve is widely expected to leave borrowing costs unchanged this month, while markets are pricing in a 25-basis-point increase in December.
The greenback weakened broadly against major currencies, with the euro rising to US$1.1261 in late New York trading on Tuesday from US$1.1215 in the previous session. The pound also strengthened to US$1.3277 from US$1.3219.
Against the ringgit, the US dollar traded at 4.0863 on Wednesday, down 0.02% from the previous session, while another market reading put the rate at 4.0858, a 0.03% decline.
The ringgit has weakened about 0.6% against the US dollar over the past month but remains around 3.1% stronger than a year earlier.
For Malaysia, renewed volatility in crude prices remains a key external risk, particularly through fuel costs, inflation, trade flows and the ringgit, even as the recovery in regional oil exports offers some relief. - October 7, 2026
