War and conflict are terrible things. In recent months, we have seen the rising conflict between Iran and Israel due to the situation in the Gaza Strip, which then escalated due to Israel’s military strike on an Iranian diplomatic compound in Syria. Yesterday, we may have seen this conflict escalate once again due to Iran’s retaliatory military strike on Israel for the above reasons. Although what is happening is thousands of miles away from Malaysia, it can have a drastic effect on our country, both positively and negatively, especially when it comes to our oil trade.
During the Russia-Ukraine war, global oil prices spiked, with prices rising above US$100 at their peak due to sanctions placed on Russia. A similar pattern may emerge if Western countries, particularly the United States, decide to increase sanctions on Iran. Iran produces around 3 million barrels of oil a year.
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