Oil Shocks to Inflation: How Should Malaysia Respond to the US–Israel–Iran War?

In late February 2026, the United States and Israel carried out coordinated illegal military strikes on Iran, which is a sovereign country. Within the first few days, they bombed a school full of young Iranian girls and assassinated Ayatollah Ali Khamenei, the Iranian head of state. This set off a rapidly escalating regional conflict, with Iran attacking US military bases in neighbouring Gulf countries, as well as restricting ships from entering the Strait of Hormuz, one of the most important arteries of the global economy.So what does this escalation mean for global energy markets, trade, and economic stability. Where does ASEAN and Malaysia stand in all of this? After all, in Malaysia, our subsidies maintain how much we have to fork out for fuel as consumers, but the actual price has skyrocketed which will have tremendous ripple effects. We unpack all of this and more with Yin Shao Loong, Deputy Director of Research, Khazanah Research Institute. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.