Headlines
Conflict in Middle East shadows oil industry gathering in Malaysia
Published by Global Banking & Finance Review®
Posted on June 16, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 16, 2025
3 min readLast updated: January 23, 2026
The Middle East conflict casts a shadow over the Malaysia oil conference, impacting global energy security and oil prices.
By Florence Tan and Sudarshan Varadhan
KUALA LUMPUR (Reuters) -Global energy executives gathered in the Malaysian capital on Monday for an industry conference with an eye on the dramatic escalation in the conflict between Israel and Iran, which has fuelled worries that it could widen and disrupt supply.
The head of Saudi state oil giant Aramco said conflict underscores the importance of oil and gas.
"(History has) shown us that when conflicts occur, the importance of oil and gas can't be understated," Chief Executive Amin Nasser told delegates by videolink.
"We are witnessing this in real time, with threats to energy security continuing to cause global concern," he said, without directly mentioning the fighting between Israel and Iran.
Israel launched strikes on Friday against Iran, including on its nuclear power facilities, that it said aimed to prevent Tehran from building an atomic weapon.
The fighting intensified over the weekend, with Israel targeting an installation at Iran's South Pars gas field on Saturday, the first attack on Tehran's oil and gas sector, which partially shut production. [O/R]
The attack on South Pars was surprising given its importance as a production facility, said Takayuki Ueda, chief executive of Japanese oil and gas explorer Inpex Corp.
"The market feels the situation is still under control by both countries, and I hope this situation will not be escalated," he told Reuters, adding that the firm's operations in the United Arab Emirates were running smoothly.
"If this is a really, really a full-fledged war, I think oil price will be hiked to more than $100," Ueda said.
Oil prices dipped on Monday after rising earlier in the session and surging 7% on Friday.
OPEC secretary general Haitham Al Ghais, who spoke at the event, did not take questions about the conflict and its impact on oil markets from a Reuters reporter.
Numerous other executives attending the event also declined to comment on the events in the Middle East.
Energy services firm Baker Hughes said it continued to operate its facilities in the region.
"It's a little early, and we've got to monitor the situation with regard to what's the potential impact on supply," Chief Executive Lorenzo Simonelli told Reuters on the sidelines, adding that the firm's employees were safe.
"Hopefully there's a de-escalation of tensions," he said.
(Reporting by Florence Tan, Sudarshan Varadhan and Danial Azhar in Kuala LumpurEditing by Tony Munroe and Clarence Fernandez)
Chief Executive Amin Nasser emphasized that the importance of oil and gas cannot be understated during conflicts, highlighting ongoing threats to energy security.
Oil prices dipped on Monday after a surge of 7% on Friday, indicating market volatility amid the escalating conflict.
Numerous executives attending the event declined to comment on the Middle East conflict, indicating a cautious approach to discussing its implications.
Baker Hughes stated that it continues to operate its facilities in the region, but is monitoring the situation for potential impacts on supply.
Takayuki Ueda suggested that if the situation escalates into a full-fledged war, oil prices could rise to more than $100.
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