Short-term impact on oil prices from Israel-Iran conflict: Amir Hamzah

The Sun

5 hours ago

KUALA LUMPUR: The Israel-Iran conflict is expected to have only a short-term impact on crude oil prices, according to Minister of Finance II Datuk Seri Amir Hamzah Azizan.
He said that while prices surged sharply during renewed hostilities, oil prices quickly retreated as signs of peace talks and ceasefire efforts emerged between the two countries.
Amir Hamzah highlighted that despite initial volatility, market stability returned as fears of prolonged conflict and supply disruption subsided, reinforcing the government's confidence in managing the situation amid ongoing global economic uncertainty.
'Oil prices rose sharply when the conflict occurred. However, with the onset of peace talks, prices have declined. For now, the overall impact appears to be short term,' he told reporters at the Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) 2025 Budget Initiative launch today.
Amir Hamzah emphasised that peace is crucial not only for humanity but also for sustaining economic stability.
'We hope that efforts towards peace talks will continue, and Malaysia will remain steadfast in supporting all initiatives to maintain peace in the region,' he said.
Oil prices briefly jumped by about 7% earlier this month due to fears that the war between Israel and Iran could disrupt supply. But prices have since fallen back to around US$67 per barrel after tensions eased and talks began.
Meanwhile, a fragile ceasefire seemed to be holding for a second day today.
SME Bank has launched a suite of strategic initiatives valued at RM211 million, reinforcing its commitment to advancing the government's Madani Economic Framework and aligning with the bank's mandate under Budget 2025.
Focused on high-impact sectors such as technology, tourism, halal, and environment, social and governance, these initiatives also promote inclusivity by empowering B40 and asnaf entrepreneurs, reinforcing SME Bank's role in building a resilient and future-ready MSME ecosystem.
Amir Hamzah said the initiatives reflect the country's future direction towards a more modern, sustainable, and competitive economy.
In line with the Madani Economic Framework, Amir Hamzah, said Budget 2025 has provided extensive support for MSMEs. 'This includes more than RM40 billion in the form of loans and guarantees, stamp duty exemptions to reduce the cost of financing access, and matching grants to support digitalisation and sustainable business practices.'
He said the aim is to strengthen the competitiveness of MSMEs, while ensuring they remain relevant in a future economic landscape driven by technology and sustainability agendas.
'Therefore, for 2025, the government has mandated SME Bank to roll out various initiatives with an allocation exceeding RM1 billion, including five new initiatives worth over RM200 million designed to support sustainable and inclusive growth for the MSME segment.
'The launch of these strategic programmes by SME Bank today is to realise the government's vision and aspiration to stimulate MSME-driven growth, strengthen domestic economic resilience, and in turn help maintain investor confidence in Malaysia,' Amir Hamzah said.
SME Bank acting group president and CEO Datuk Dr Mohammad Hardee Ibrahim shared initiatives, including MySMELady 2.0, Umbrella Ecosystem Financing, Dana Kelestarian Alam, and Maju Usahawan Madani, which demonstrate an approach to nation-building and a commitment to strengthening the national entrepreneurial landscape.
'Additionally, we are also proud to roll out the fourth edition of the SME Bank iTekad Ishraf, a beyond-financing initiative designed to equip the B40 and asnaf entrepreneurs with the knowledge, skills and resources needed to sustain and grow their businesses,' he said.
Riding on this momentum, Mohammad Hardee said, the bank remains on track to achieve its RM3 billion approved financing target for this year, with continued emphasis on key strategic sectors, with RM2 billion already recorded as of May 2025.
'These achievements reaffirm our sustained role in fostering MSME development, in alignment with the government's Madani vision to build a more inclusive, resilient and future-ready Malaysia,' he said.