Malaysia’s economy minister warns a Strait of Hormuz closure could sharply tighten supply, spiking global crude oil and LNG prices and impacting energy costs.
KUALA LUMPUR: A temporary closure or restriction of the Strait of Hormuz could sharply tighten global supply, pushing up crude oil and liquefied natural gas prices.
Economy Minister Akmal Nasrullah Mohd Nasir said any closure of the vital energy transit chokepoint would pose a significant risk that industry players must closely monitor.
He warned it could drive up risk premiums on energy imports and further strain global supply chains.
“We have seen oil prices spike sharply as markets factor in potential supply disruptions,” he said in his plenary address at the OGSE100 CEOs Forum 2026.
He noted this matters to Malaysia because LNG, which it imports from Australia and other suppliers, is closely linked to global oil prices.
“So any sudden increases can affect industrial energy costs, electricity generation, and household fuel expenditures,” he added.
The minister said the ongoing Middle East conflict adds uncertainty to fuel costs and overall energy security for Malaysian businesses and the power sector.
“That is why it is important to diversify our energy sources, strengthen domestic generation capacity, and accelerate renewable and transition technologies,” he said.
He added that energy security is inseparable from economic resilience.
“(Currently) it is about preparing a system that can maintain reliable, affordable, and stable energy supplies even amid global volatility,” he said.
The forum also unveiled the latest edition of the Malaysia Petroleum Resources Corporation flagship publication.
It tracks the financial performance of Malaysia’s oil and gas services and equipment industry and ranks its top 100 companies by revenue.
The report shows the OGSE industry posted a record revenue of RM94.5 billion in the 2024 financial year.
This is its highest since MPRC began tracking the sector in 2013, with profit before tax surging 95% to RM9.4 billion.