Oil steadies as US-Iran tensions persist

OIL prices held near US$89 a barrel for US crude and US$96 for Brent on Friday as fresh tensions between Washington and Tehran offset signs of recovering Middle Eastern supplies, while a stronger US dollar kept the ringgit under pressure.

US President Donald Trump's declaration that Washington no longer needed a deal with Iran has dampened hopes of a diplomatic resolution to the conflict, adding uncertainty to the global energy outlook.

Trump also directed Vice-President JD Vance to prioritise domestic issues over negotiations with Tehran, while Iran maintained that the United States must lift its naval blockade and sanctions before direct peace talks could proceed.

Mohsen Rezaee, secretary of Iran's Supreme National Security Council, meanwhile, reiterated that Tehran had no intention of removing its enriched nuclear materials from the country.

Despite the renewed tensions, both US crude and Brent remained on track for a second consecutive weekly decline as Middle Eastern crude exports continued to recover. Expectations of a potentially faster resolution to the conflict following Democratic gains in the US midterm elections also supported market sentiment.

In currency markets, the US dollar strengthened amid growing expectations that the Federal Reserve could resume raising interest rates as persistent inflationary pressures prompted policymakers to adopt a more hawkish stance.

The US Dollar Index (DXY) stood at 103.181 on Thursday, gaining 0.27 per cent from the previous session and extending its advance over the past two trading sessions to more than one per cent.

The dollar's gains followed October inflation figures that exceeded market expectations, alongside hawkish comments from Federal Reserve officials.

Fed Governor Christopher Waller cautioned that a 50-basis-point rate increase in December might be necessary, while Dallas Fed President Lorie Logan supported at least two further 25-basis-point increases to contain inflation.

Markets were pricing in a 91 per cent probability of a December rate increase, with investors also considering the possibility of further monetary tightening in January and April.

Against this backdrop, the ringgit weakened modestly against the greenback, with the USD/MYR exchange rate rising to 4.0830 on Friday, up 0.11 per cent from the previous session.

The exchange rate had stood at 4.07850 on Thursday, representing a 0.13 per cent increase from the previous trading session.

However, the ringgit remained marginally stronger over the longer term, appreciating 0.07 per cent against the US dollar over the past month and 1.11 per cent over the past 12 months, based on Friday's exchange-rate data.

The US dollar-ringgit pair had gained 0.18 per cent over the preceding four weeks based on Thursday's figures, although it remained 1.22 per cent lower over the past year.

The contrasting movements in energy and currency markets reflect the competing pressures facing investors, with geopolitical uncertainty supporting oil-market risk premiums while inflation concerns and expectations of tighter US monetary policy underpin the dollar. - November 13, 2026