Four weeks into the US-Israeli war on Iran, the crisis is beginning to bite in Malaysia, where Prime Minister Anwar Ibrahim has cut the monthly quota for subsidised petrol and food manufacturers are warning that surging diesel costs could force them to close or raise prices.
The move reflects how a distant geopolitical shock is beginning to feed directly into Malaysia’s fuel bill, food supply chain and inflation outlook, analysts note.
In a special televised address on Thursday, Anwar said the fallout from the conflict was no longer something Malaysia could watch from a distance.
He said, however, that its vessels were once again being allowed through the Strait of Hormuz – the important chokepoint for global oil and gas trade – following talks between Anwar and leaders in Iran, Egypt, Turkey and other regional countries.
Malaysia, a Muslim-majority country, has long maintained cordial ties with Iran and has recognised Tehran’s right to protect its sovereignty while also urging a rapid resolution to the conflict.
Anwar said the blockade at the Strait of Hormuz, the war and disrupted oil and gas supplies “all have an impact on us”, even if Malaysia was in a better position than some countries because of state-owned energy giant Petronas.
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