The Digester
finance

Malaysia urged to secure oil supplies before May amid Strait of Hormuz closure

Experts warn that delayed shipments after Tehran closed the Strait of Hormuz could leave Malaysia without hydrocarbon reserves by May, risking sharp price rises and an economic slowdown if the government does not act quickly.

Apr 3rd 2026 ยท Malaysia

Insights

  • Malaysia is a net energy exporter but hydrocarbon reserves are expected to last only until May.
  • About half of Malaysia's oil supply is stranded or delayed after Tehran effectively closed the Strait of Hormuz in retaliation for US and Israeli bombardments that began on February 28.
  • If fresh shipments are not secured before reserves run out, fuel and raw material shortages will push up prices and inflation quickly.
  • Analysts warn immediate effects on supply and prices could trigger a prolonged economic downturn if not addressed rapidly.
  • The government must urgently source alternative shipments and stabilise supply to prevent severe disruption and yearslong recovery.

Sources