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 (May 14): The FBM KLCI closed 0.12 point or 0.01% higher at 1,397.25 after erasing losses in the final trading hour, while Bursa Malaysia’s index for small market capitalisation (small cap) stocks fell 1.07% as concerns over a second wave of Covid-19 infections drove global market sentiment. Analysts also expected Malaysia’s current corporate financial reporting season to affect local equity market sentiment.
At 5pm, the KLCI closed higher after trading in negative territory for most of the trading session today. The index had earlier fallen to its intraday low of 1,388.80 points.
The Small Cap Index closed down 123.95 points or 1.07% at 11,419.56.
“Moving forward, investors will brace [themselves] for a barrage of corporate earnings releases, albeit some companies have opted for deferment of the release of their financial performance,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com Leong said buying support for selected index-linked stocks at the 11th hour nudged the 30-company index up to close in positive territory.
Across Bursa, the exchange saw 7.01 billion securities worth RM4.04 billion traded. Decliners led gainers by 616 to 345 as KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd ended among the top gainers.
Top Glove’s share price closed 99 sen or 10.63% higher at RM10.30, while Hartalega rose 33 sen or 3.72% to RM9.19, as concerns over the second wave of Covid-19 infections led to expectations of higher demand for rubber gloves.
Globally, it was reported that stock markets fell and bonds were in demand today as worries grew about the second wave of the pandemic and a dour assessment by the head of the US Federal Reserve (Fed) dashed hopes for a quick economic recovery.
Reuters reported that Fed chair Jerome Powell had warned of a recession worse than any since World War II, and called for additional fiscal spending to stem the fallout from the pandemic.
It was reported that new outbreaks in South Korea and China were a cause for concern even as more countries began to reopen their economies after lengthy lockdowns.
Source: The Edge
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