Oil market needs more time

Malaysia’s Economy Minister Akmal Nasrullah Mohd Nasir stated that global oil supply recovery will take time despite a U.S.-Iran peace deal, citing infrastructure damage and disrupted trade routes in the Strait of Hormuz. He emphasized the need for continued monitoring of economic pressures while noting Malaysia’s first-quarter GDP growth of 5.4% and low inflation at 1.9%." "article": "Malaysia’s Economy Minister Akmal Nasrullah Mohd Nasir warned that the recovery of global oil supplies will be gradual, even if a peace deal between the United States and Iran is finalized. He highlighted ongoing disruptions in the Strait of Hormuz and damage to critical infrastructure from the conflict, which could delay the reopening of key trade routes. The minister noted that any positive impact on the oil market and global economy would not be immediate, despite the anticipated end of hostilities. The Strait of Hormuz remains a vital passage for global oil trade, and disruptions there continue to influence energy costs and inflation in Malaysia and other nations. Akmal Nasrullah confirmed that Malaysia’s Economy Ministry will keep monitoring developments and implementing mitigation measures to ease economic pressures. This includes coordination through the National Economic Action Council (MTEN) to address ongoing challenges. In Parliament, the minister will deliver a statement on the global energy crisis and supply chain disruptions, followed by a debate session. The Dewan Rakyat is scheduled to convene from June 22 to July 16, where lawmakers will discuss the government’s response to the crisis. On economic performance, Malaysia recorded a 5.4% GDP growth in the first quarter of 2024, with inflation remaining stable at 1.9%. The minister emphasized the need for vigilance as the situation in the Middle East evolves, ensuring measures are in place to support the national economy.