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Institution: The current conflict in the Middle East may be short-lived
Svmuu News: In a report, analysts at Hong Leong Investment Bank stated that the current U.S.-Israel-Iran conflict is expected to be brief, similar to last year’s 12-day conflict. Oil prices are expected to rise temporarily before normalizing to the $60–70 per barrel range. Although rising crude oil prices may increase Malaysia’s fuel subsidy expenditures, the government is unlikely to alter its 2026 fiscal deficit target of 3.5%. The conflict may strengthen the U.S. dollar and weaken the ringgit, putting pressure on the local stock market in the short term. Upstream oil and gas and petrochemical companies may benefit, while airlines such as AirAsia X and Seaport Holdings may face headwinds. (Jin Shi)
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