Akmal Nasrullah: Strait of Hormuz repairs mean oil recovery gradual, but outlook remains hopeful

PUTRAJAYA, June 15 — The recovery of global oil supplies is expected to take time despite a peace deal between the United States and Iran, following infrastructure damage and disruptions to strategic trade routes caused by the conflict.

Economy Minister Akmal Nasrullah Mohd Nasir said the ongoing global geopolitical crisis has significantly impacted the national economy, particularly regarding oil supplies, adding that any positive developments towards peace are highly anticipated.

However, he noted that the impact on the oil market and the global economy would not be immediate, as the recovery process requires time.

“If it is true that a peace deal can be reached, its impact may take time because of the process of clearing routes in the Strait of Hormuz and repairing infrastructure damaged during the war. So, it will take time to fully recover,” he told reporters after the Ministry of Economy’s monthly gathering today.

He was asked to comment on recent developments regarding the peace agreement reached between the United States and Iran.

He said the Strait of Hormuz is a vital route for global oil trade, and any disruption in the area carries implications for energy costs and inflationary pressures in many countries, including Malaysia.

Consequently, he said the Economy Ministry would continue to monitor developments and maintain mitigation measures to ease economic pressures, including through the National Economic Action Council (MTEN).

“At the Ministry of Economy level, we remain committed to exploring the roles we can play to ease the ongoing pressures until the situation provides a clearer picture that this crisis has truly ended,’ he said.

It was reported today that the United States and Iran have reached a peace agreement, calling for an immediate and permanent cessation of military operations across all conflict zones, including Lebanon, which directly signals the end of a conflict in West Asia that has dragged on for more than three months. — Bernama