US strike on Iran may trigger oil shock across Southeast Asia, warns analyst
KUALA LUMPUR: Oil prices in Southeast Asian countries, including Malaysia, could be significantly affected due to US military strikes on Iran.
Senior fellow at the Nusantara Academy for Strategic Research Dr Azmi Hassan said that oil prices were already rising prior to the strikes earlier today
"If Iran is now backed into a corner and desperate, they may decide to close the Strait of Hormuz," he warned, highlighting that the passage remains critical for oil exports from the Middle East to Asia.
"China would be impacted, as nearly 80 per cent to 90 per cent of its oil from Iran would be severely affected.
"Not only China, but other Southeast Asian countries would also be affected," Azmi added.
Meanwhile, Azmi also criticised US's decision to target Iran's nuclear facilities, citing the risk of radiation leakage.
He contrasted the muted response of the International Atomic Energy Agency (IAEA) over the Iran strikes with its earlier condemnation of Russia's attack on Ukraine's Zaporizhzhia nuclear facility.
"To attack a member of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) makes it very difficult for the IAEA chief to justify their position," he added.
Azmi concluded that the US strike is unlikely to cool tensions and will affect regional and global stability.
The United States announced its entry into the Iran-Israel war earlier today, stating that it has carried out attacks on three Iranian nuclear sites, including the underground uranium enrichment facility at Fordow.
Entering its second week, Israel began the conflict through 'preemptive' airstrikes on several strategic sites in Iran, including nuclear facilities, missile bases and military command centres, followed with retaliation by the Gulf state.
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