Malaysia Says Iran Granted Some of Its Oil Vessels Passage via Strait of Hormuz

By Ying Xian Wong

KUALA LUMPUR, Malaysia--Malaysia's prime minister said Iran has granted some of its oil vessels passage via the Strait of Hormuz, the key energy shipping route tankers have been struggling to pass through amid the Middle East conflict.

In a televised speech late Thursday, Malaysian Prime Minister Anwar Ibrahim thanked Iran's president, Masoud Pezeshkian, for letting the ships go through the waterway.

"We are now in the process of securing the release of the Malaysian oil vessels and the crew involved so they can continue their journey home," he said.

A limited number of ships have passed through the strait since the Iran war began in late February. Iranian officials have said the lane is open to all but the country's adversaries.

In a post on X this week, Iran's mission to the United Nations said "non-hostile" vessels could pass through the strait "in coordination with the competent Iranian authorities."

Earlier this month, two Indian tankers were also allowed to transit the strait after a phone call between Indian Prime Minister Narendra Modi and Iran's president.

Choking off the flow of energy from the Gulf is a serious concern for Asia's oil-importing economies, which rely heavily on the Middle East for their energy needs. As a net energy exporter, Malaysia is better-placed than most to weather the shock, analysts say.

In the briefing, Anwar said that supply disruptions linked to the strait and the broader conflict are affecting oil and gas flows, but that Malaysia can mitigate the impact due to state oil company Petroliam Nasional, better known as Petronas.

Anwar said he has been in contact with international leaders from Iran, Egypt, Turkey and other Gulf states to facilitate peace in the Middle East.

"It is not easy, as Iran feels it has been repeatedly deceived and is unwilling to accept peace efforts without binding guarantees and security assurances," he added.

Malaysia has been making efforts to soften the impact of rising energy prices on consumers but the cost of that is getting high.

As subsidy costs balloon, the government is cutting the quota for subsidized fuel to 200 liters a month from 300 liters starting in April.

Anwar said the price for subsidized RON95--the most widely used fuel in Malaysia--will remain capped at 1.99 ringgit, equivalent to 50 U.S. cents, a liter.

The government is also considering additional steps, including flexible work arrangements. Civil servants will be gradually ordered to work from home and the private sector is encouraged to adopt similar measures, Anwar added.

Write to Ying Xian Wong at [e-mail]

(END) Dow Jones Newswires

03-26-26 2223ET