Kuala Lampur, April 4 -- The escalation of the US-Iran conflict in early 2026 has sent shockwaves through the global energy market. Crude oil prices have surged due to maritime risks in the Strait of Hormuz and threats of retaliatory strikes on energy infrastructure. This could worsen into an energy crisis, affecting all Malaysians.

For Malaysia, this presents a "double-edged sword." While the nation benefits from increased petroleum revenue as a net exporter, it faces a severe fiscal strain from a fuel subsidy bill that has ballooned to over US$800 million (RM3.4 billion) monthly. To prevent this volatility from spiraling into a systemic energy crisis, Malaysia must adopt a multi-pronged strategic approach.

Targeted subsidy rationalisa...