Institutions: The current Middle East conflict may be short-lived

Odaily News Hong Leong Investment Bank analysts stated in a report that the current US-Israel-Iran conflict is expected to be short-lived, similar to the 12-day conflict last year. Oil prices are expected to rise temporarily before normalizing back to the $60-70 per barrel range. While rising crude oil prices may increase Malaysia's fuel subsidy expenditure, the government is unlikely to alter its 3.5% fiscal deficit target for 2026. The conflict could lead to a stronger US dollar and a weaker Malaysian ringgit, putting pressure on the local stock market in the short term. Upstream oil and gas and petrochemical companies may benefit, while airlines like AirAsia X and Westports Holdings could face headwinds. (Jin10)