THE government has reaffirmed its commitment to keeping the retail price of RON95 petrol at RM1.99 per litre despite mounting volatility in global oil markets triggered by the recent US and Israeli military strikes on Iran.
Prime Minister Datuk Seri Anwar Ibrahim, who also serves as finance minister, said the government would make every effort to shield Malaysians from fuel price hikes.
“Insya Allah, for the people of Malaysia, I will try to ensure there is no increase in fuel prices,” Anwar said.
“We will give the maximum effort to hold off [on raising prices]. But [the market] is beyond our control, and we cannot guarantee there won’t be any price increase.”
He made the remarks after a breaking-of-fast event with local community leaders at the Seri Perdana Complex on Sunday.
The attacks in the Middle East have intensified geopolitical risk premiums, particularly around the Strait of Hormuz, a strategic maritime chokepoint through which about 20 per cent of the world’s oil is transported.
Analysts warn that the disruption of shipping lanes, coupled with targeted strikes on tankers and naval vessels, has sent Brent crude prices above US$80 per barrel, up from US$72.87 on Friday, before easing slightly to US$79.
Global equity markets have responded nervously. Japan’s Nikkei index fell 2.2 per cent in early trading while Sydney’s market dropped 0.5 per cent. Meanwhile, safe-haven assets such as gold rose by around two per cent.
U.S. President Donald Trump has called on the Iranian public to rise against their leadership and warned that the conflict could last up to “four weeks.”
Iran has launched missile and drone attacks across the Gulf, killing four people and injuring dozens in the United Arab Emirates and Israel.
Tehran has also warned against passage through the Strait of Hormuz, effectively halting traffic in one of the world’s busiest oil corridors.
At least two vessels have reportedly been attacked near Oman and the UAE, with Iranian state media reporting a tanker was struck and sinking after attempting passage.
“The net effect of a closure of the Strait is a loss of crude supply of between eight and ten million barrels per day,” AFP cited Jorge Leon, senior vice president at Rystad Energy saying.
Analysts note that while OECD countries maintain strategic oil reserves covering 90 days, prolonged disruption could still push prices above US$100 per barrel.
Amena Bakr, head of Middle East and OPEC+ research at Kpler, said: “If the Strait blockade continues, no amount of strategic reserves could fill the gap. The shortfall is simply too large.”
The surge in hydrocarbons threatens broader economic consequences. Eric Dor, an economist at IESEG School of Management in Paris, said rising oil and gas prices would increase transport costs, energy bills, and reduce airline revenues, potentially slowing economic growth.
“If it only lasts three days, the impact is minor. But if it persists, it could lead to further economic contraction,” he said.
Gas prices are also expected to climb, particularly in Qatar, a major LNG exporter, heightening inflationary pressure.
Certain sectors, such as defence, may see temporary gains, but Dor warned of likely declines in aviation, maritime transport, and tourism equities.
Despite these pressures, Anwar’s announcement underscores Malaysia’s determination to protect households from immediate fuel cost shocks, even as global instability continues to reverberate through international oil and financial markets. - March 2, 2026
