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US stock markets surged to record levels as prospects of de-escalating Iran tensions triggered a sharp fall in crude oil prices and Treasury yields. The Dow closed at an unprecedented high, lifted by strong corporate earnings across most sectors.
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Shell's first-half earnings jumped 70% to US$16.75 billion, exceeding forecasts as the oil giant capitalised on volatile crude markets amid Middle East tensions. Trading operations drove exceptional gains.
Oil prices tumbled roughly 5% to two-week lows Tuesday as markets responded to a temporary pause in US-Iran hostilities. However, underlying geopolitical risks and shipping disruptions continue to weigh on broader energy markets.
Bursa Malaysia opened weakly despite crude prices surging past $95 a barrel, with the FBM KLCI gaining just 3.01 points to 1,714.38 as investors weighed Middle East tensions against concerns over Big Tech's capital expenditure plans.
Malaysia's combined RON95 and diesel subsidies could reach RM3.5 billion monthly if crude oil holds at US$90 per barrel, though the government expects higher petroleum revenues to offset increased costs.
Oil markets rally on intensifying US-Iran military confrontation, with crude climbing nearly 12% this week. The risk of Red Sea closure adds to supply concerns as both powers trade strikes across the Gulf.
Malaysia's Deputy Finance Minister Liew Chin Tong has ruled out revising Budget 2027 fiscal projections, despite higher oil prices forcing an estimated RM40 billion increase in fuel subsidy expenditure. The government remains confident in its consolidation strategy.
PETRONAS Chemicals and Malaysian banks drove the FBM KLCI higher as crude oil prices spiked following Iranian attacks on tankers in the Straits of Hormuz, though analysts caution rising energy costs could pressure regional manufacturers.