Iran has warned global markets to prepare for oil at US$200 per barrel , escalating rhetoric as attacks intensify and shipping through the Strait of Hormuz remains effectively frozen. While oil prices have retreated from recent highs near US$120, Tehran’s message underscores the growing risk of a prolonged energy shock. Key Takeaways Iran warns oil could surge to US$200 per barrel Strait of Hormuz remains blocked, disrupting 20% of global oil flows 14 merchant ships reportedly struck since conflict began IEA expected to propose record 400 million-barrel reserve release Markets currently betting conflict may be contained Oil Market on Edge Iran’s military command said oil prices depend on regional security — warning the world to prepare for US$200 crude if instability persists. The Strait of Hormuz, a narrow chokepoint along Iran’s coast, normally handles: About 20% of global oil shipments A significant share of global LNG trade So far: At least 14 ships have reportedly been struck...
KUALA LUMPUR (June 5): The FBM KLCI rose 0.62% today, trailing last week’s rally in the U.S. stock market and supported by higher commodity prices.
The benchmark index rallied throughout the day to close up 11 points at 1787.95. On the broader market, 2.48 billion shares, worth RM2.64 billion were traded with 542 gainers against 382 decliners, while 353 counters closed unchanged.
Inter-Pacific Research head Pong Teng Siew said the local market was boosted by the bullish sentiment seen in the U.S. market, which closed at record highs last Friday, lifted by finance and technology stocks.
Both the S&P 500 and the Dow Jones Industrial Average closed at record highs of 2,349.07 and 21,206.39 respectively.
Back home, gainers included Hong Leong Financial Group Bhd, KESM Industries Bhd, United Plantations Bhd and Petronas Dagangan Bhd. Decliners included Kluang Rubber Co (M) Bhd and Manulife Holding Bhd.
Pong said the KLCI “has no problem breaching the 1,800-level soon”, but raised concerns on over-valuation of companies. “The average price-earnings ratio (P/E) in KLCI is at 15.9 times, fast approaching the trading levels in 12-month forward basis.
“This tells you that we are near the peak of valuation in P/E terms.
“We have not been able to break the level during the previous cycles of stock market rally and during the 2008 financial crisis, so it remains to be seen [as to] how far the shares will climb,” he added.
Oil prices rose to an intra-day high of US$50.71 earlier today, following news Saudi Arabia, Bahrain, the United Arab Emirates and Egypt cut ties with Qatar on terrorism concerns, Reuters reported. Meanwhile, crude palm oil prices continued to recover from last week’s losses, thanks to higher demand in the spot market.
Among Asian stock indices, Japan’s Nikkei 225 closed down 0.03% to stay well above the 20,000 level. South Korea’s KOSPI lost 0.13%, whereas Hong Kong’s HSI closed 0.24% lower.
Source: The Edge
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