KUALA LUMPUR, March 12 (Bernama) -- Bursa Malaysia’s benchmark index reversed earlier losses to end at its intraday high on Thursday, staging a late rebound during the final hour of trading. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.23 points to 1,711.01 from yesterday’s close of 1,708.78. The market bellwether opened 8.09 points lower at 1,700.69, and slipped to its day’s low of 1,694.80 during the mid-morning session before gaining momentum in the afternoon trading toward the close. However, market breadth was negative, with losers leading gainers 538 to 529. A total of 525 counters were unchanged, 1,075 untraded, and 17 suspended. Turnover climbed to 3.01 billion units worth RM3.53 billion from Wednesday’s 2.70 billion units worth RM2.78 billion.
The Iran conflict has unleashed the biggest oil market disruption ever recorded, knocking out 7.5% of global supply and sending crude prices back above US$100 per barrel.
Historic Supply Disruption
International Energy Agency (IEA) said the war is slashing global oil supply by 8 million barrels per day this month — the largest disruption in oil market history.
Flows through the Strait of Hormuz — which handled about 20 million barrels per day last year — have plunged by more than 90%.
Key Point: The effective closure of Hormuz has forced Gulf producers to shut roughly 10 million barrels per day of output.
Oil Surges Back Above US$100
Brent crude climbed back above US$100 per barrel after fresh tanker attacks in Iraqi waters and Oman evacuated vessels from its export terminal.
Before the conflict, markets expected a record oil surplus in 2026. Now, the IEA has cut its projected 2026 surplus by over one-third to 2.4 million barrels per day.
Demand Hit as Prices Spike
The supply shock is now feeding into demand destruction:
Global oil demand growth forecast cut by 25%
2026 consumption growth trimmed to 640,000 barrels per day
Lowest projection since forecasts for the year began
Flight cancellations, rising fuel costs and economic uncertainty are weighing on consumption.
Key Point: Higher oil prices are now starting to erode global demand growth.
Emergency Reserve Release
IEA member nations agreed to release 400 million barrels from strategic reserves — the largest coordinated drawdown in history.
The US will contribute 172 million barrels from its Strategic Petroleum Reserve, though it may take up to 120 days to fully deploy.
Despite the move, investors remain skeptical about how quickly reserves can offset lost supply.
Global Impact
While Saudi Arabia and the UAE can reroute some exports, the closure of Hormuz also threatens:
4 million barrels per day of regional refining capacity
Diesel and jet fuel supply chains
Global inflation stability
Producers outside OPEC — including the US, Canada, Guyana and Brazil — are increasing output, along with OPEC+ members Kazakhstan and Russia, partially cushioning the shock.
Market Implications
The disruption has shifted market expectations dramatically:
From oil glut to supply crisis
From easing inflation to renewed price pressure
From rate-cut optimism to policy uncertainty
If the Strait of Hormuz remains restricted, energy markets may face prolonged volatility and renewed stagflation risks.
Bottom Line: The Iran war has triggered the most severe oil supply disruption in modern history, pushing crude above US$100 and reshaping global inflation and growth outlooks.
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