KUALA LUMPUR – A temporary closure or restriction of the Strait of Hormuz could sharply tighten supply, pushing up global crude oil and liquefied natural gas (LNG) prices, Economy Minister Akmal Nasrullah Nasir said.
He added that any closure of the vital energy transit chokepoint would pose a significant risk that industry players must closely monitor, as 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, and this matters to us in Malaysia because LNG, which Malaysia 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 said in his plenary address at the OGSE100 CEOs Forum 2026 here today.
OGSE100 unveiled the latest edition of the Malaysia Petroleum Resources Corporation (MPRC) flagship publication, which tracks the financial performance of Malaysia’s oil and gas services and equipment (OGSE) 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, its highest since MPRC began tracking the sector in 2013, with historical records dating back to 2005. Profit before tax surged 95 per cent to RM9.4 billion.
The minister said the ongoing Middle East conflict adds uncertainty to fuel costs, electricity pricing 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 and high oil price scenarios,” he said.
As of 10.19 am, Brent crude oil prices rose by 0.98 per cent to US$78.61 per barrel.– March 3, 2026