PUTRAJAYA: The recovery of global oil supplies is expected to take time despite a peace deal between the United States and Iran, says Akmal Nasrullah Mohd Nasir.
The Economy Minister said this was due to infrastructure damage and disruptions to strategic trade routes caused by the conflict.
“If it is true that a peace deal can be reached, its impact may take time because of the process of clearing routes in the Strait of Hormuz and repairing infrastructure damaged during the conflict,” he told reporters after addressing the Economy Ministry’s monthly gathering yesterday.
He added that any positive developments towards peace are highly anticipated, but the impact on the oil market and the global economy would not be immediate.
Akmal Nasrullah noted that the Strait of Hormuz is a vital route for global oil trade and any disruption in the area carries implications for energy costs and inflationary pressures in many countries, including Malaysia.
As such, he said that his ministry would continue to monitor developments and maintain mitigation measures to ease economic pressures, including through the National Economic Action Council (MTEN).
“At the ministerial level, we remain committed to exploring the roles we can play to ease the ongoing pressures until the situation provides a clearer picture that this crisis has truly ended,” he added.
It was reported yesterday that the United States and Iran had reached a peace agreement, signalling the end of a conflict in the Middle East that had dragged on for more than three months.
Earlier in his speech, Akmal Nasrullah said that a ministerial statement addressing the global energy crisis and worldwide supply chain disruptions will be delivered and debated in Parliament.
He added that he would be delivering the statement, which will include a debate session to allow lawmakers to discuss the government’s actions and plans in addressing the impact of the crisis on the national economy.
“For this upcoming session, we will table a ministerial statement on the global energy and supply crises.
“Parliament has indicated that time will be allocated for this, and the statement will be followed by a debate,” he said.
Dewan Rakyat is scheduled to begin its meeting on June 22 and will sit until July 16.
On the economy, he noted that Malaysia recorded encouraging economic growth of 5.4% in the first quarter of this year, while inflation remained low at 1.9%.
