Institution: The current Middle East conflict may be temporary

According to Odaily, analysts at Hong Leong Investment Bank 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 and then normalize to the range of $60-70 per barrel. Although rising crude oil prices may increase Malaysia's fuel subsidy expenditure, the government is unlikely to change its 2026 fiscal deficit target of 3.5%. The conflict may strengthen the US dollar and weaken the ringgit, putting pressure on the local stock market in the short term. Upstream oil and gas and petrochemical companies may benefit, while airlines such as AirAsia X and Westports Holdings may face negative impacts. (Golden Ten Data)