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Oil Shocks to Inflation: How Should Malaysia Respond to the US–Israel–Iran War?
In late February 2026, the United States and Israel carried out coordinated illegal military strikes on Iran, which is a sovereign country. Within the first few days, they bombed a school full of young Iranian girls and assassinated Ayatollah Ali Khamenei, the Iranian head of state. This set off a rapidly escalating regional conflict, with Iran attacking US military bases in neighbouring Gulf countries, as well as restricting ships from entering the Strait of Hormuz, one of the most important arteries of the global economy.
So what does this escalation mean for global energy markets, trade…
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