Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim has stated that the recent hike in oil prices, driven by the conflict in West Asia, is attributed not only to supply shortages but also to increased risk premiums and rising logistics costs. He emphasized that key fuel supply routes are still functional, and Malaysia has not faced disruptions in shipments. However, the overall expenses have surged due to heightened insurance and transportation costs.
According to BERNAMA News Agency, Anwar highlighted that oil initially procured before the conflict is now facing delays in the Strait of Hormuz and is being rerouted to Pengerang, contributing to the increased costs. Insurance premiums have risen by more than 100 percent, and freight charges have also seen a significant increase. As a result, the oil expected to be processed at a lower cost in Pengerang has become much more expensive. These remarks were made during his address at the Transport Ministry's monthly assembly.
The Prime Minister also underscored Malaysia's diplomatic strengths in safeguarding national interests amid global conflicts. He credited Malaysia's robust international relations for enabling an effective response to both regional and global challenges. Anwar mentioned Malaysia's good relations with Iran, ensuring safe passage for Malaysian merchant ships, including Petronas vessels, through the Strait of Hormuz. He shared that his discussions with Iranian President Masoud Pezeshkian led to necessary measures being taken to allow Malaysian ships to pass safely through the strait.
The Foreign Ministry previously confirmed that one of the seven Malaysian ships stranded in the strait due to regional tensions has been granted safe passage and continues to its final destination. This development followed high-level diplomatic engagements between Anwar and the Iranian President on March 26, securing approval for all seven vessels to proceed with their journeys.
The Strait of Hormuz remains a strategic passage, handling approximately 20 percent of the world's crude oil and gas. However, its transit has been impacted by ongoing attacks by the United States and Israel on Iranian territory since February 28. Anwar commented on the broader implications of the conflict, noting its effects on the global economy, including Malaysia. Although the country is not directly involved, the war, described as an unexpected crisis initiated by Israel and supported by the United States, has caused instability in Gulf countries and global markets.
Anwar added that the conflict's repercussions would be long-term, particularly affecting the energy sector. Citing the Emir of Qatar, he noted that gas operations in the region are expected to take at least three years to recover, with full performance anticipated in three to five years.