KUALA LUMPUR, April 8 (Bernama) -- Bursa Malaysia ended broadly higher, with the benchmark index rising 1.16 per cent to close near the 1,700 mark, supported by positive sentiment following news of a two-week ceasefire between the United States (US) and Iran, which includes Tehran allowing safe passage through the Strait of Hormuz. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) jumped 19.45 points to its intraday high of 1,696.31 from Tuesday’s close of 1,676.86. The benchmark index opened 11.65 points higher at 1,688.51 and touched an intraday low of 1,683.58 in early trade. In the broader market, gainers trounced losers 855 to 410, while 459 counters were unchanged, 941 untraded and 11 suspended. Turnover increased to 3.77 billion units worth RM3.64 billion from Tuesday’s 2.55 billion units worth RM2.58 billion.
A temporary ceasefire in the Middle East has failed to restore normal shipping conditions in the Strait of Hormuz, as Iran continues to exert control through a de facto “toll system”, keeping global energy markets under pressure.
Strait Control Maintains Supply Risk
According to reports, Iran has implemented a politically driven access system in the Strait:
- Iran-linked shipments: Allowed free passage
- Friendly nations: Charged fees exceeding US$1 million per vessel
- Unfriendly nations: Potentially blocked
The policy effectively turns the Strait into a strategic chokepoint, reinforcing uncertainty over global oil and gas flows.
The arrangement remains in place despite the ceasefire agreement announced by Donald Trump.
Ceasefire Fails to Normalize Energy Flows
While the US-Iran truce was expected to ease tensions, shipping activity remains limited:
- Many vessels are avoiding the Strait entirely
- Others are forced to pay high transit costs
- Coordination with Iranian military authorities is still required
This suggests that the ceasefire has not resolved underlying supply chain disruptions, particularly for energy markets.
Malaysia Secures Strategic Advantage
Malaysia has reportedly been granted toll-free passage, providing a relative advantage in maintaining trade flows compared to other nations.
This could help stabilise energy imports and shipping costs, at least in the near term.
Market Implications: Persistent Energy Risk Premium
The continued restrictions imply that:
- Oil supply risks remain elevated
- Shipping costs and insurance premiums will stay high
- Energy markets will likely retain a risk premium, even with a ceasefire
The Strait of Hormuz handles a significant share of global energy trade, making any disruption highly impactful for global inflation and growth.
Outlook: Ceasefire Offers Limited Relief
The situation highlights that geopolitical control over key infrastructure matters more than temporary truces.
Until:
- Full access to the Strait is restored
- Shipping flows normalise
energy markets are likely to remain volatile and supply-constrained.
Investor Takeaways
- Iran’s “Tehran Toll Booth” system continues to restrict access to the Strait of Hormuz.
- The ceasefire has not normalised shipping flows, keeping energy supply tight.
- Transit costs exceeding US$1 million per vessel add pressure to global trade.
- Malaysia benefits from toll-free passage, offering relative stability.
- Oil markets are likely to maintain a risk premium, sustaining inflation concerns.
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