Oil & Gas: Rising Dual Chokepoint Risks

Renewed US-Iran hostilities have sharply reduced vessel traffic through the Strait of Hormuz, reversing the partial recovery that followed the June interim agreement.

The ceasefire effectively collapsed on 8 July, while Iran declared the strait closed until further notice on 11 July following a series of tit-for-tat attacks, despite both sides continuing negotiations towards a permanent agreement.

Meanwhile, in the Red Sea, the Houthis declared a naval blockade against Saudi Arabia and threatened vessels serving Saudi ports.

Oil & Gas

Analysts at PIB says this raises the risk to the kingdom’s key alternative export corridor through the 7m bbl/d East-West Pipeline and Yanbu terminal.

Brent briefly traded above USD100/bbl as the market priced-in a higher probability of prolonged US-Iran hostilities and the risk of simultaneous disruption across the Strait of Hormuz and Bab el-Mandeb.

The earlier easing in tensions has now turned into heightened military confrontation, pushing Brent above our USD70–85/bbl 2H2026 de-escalation range.

Prices are likely to remain volatile and headline-driven, with diplomatic efforts set against the risk of further escalation. Hence, our CY2026 Brent assumption of USD83/bbl carries materially higher upside risk.

“We maintain our Overweight sector call and continue to prefer Hibiscus Petroleum(Outperform, TP: RM2.80) as our top pick, given its direct exposure to higher realised oil prices,” analysts say.

Technicals: I-Bhd (7148, Technical Buy)

Support level	Share price	Resistance level	Share price
1^st support	RM0.225	1^st resistance	RM0.245

IBHD targets sustainable growth through artificial intelligence (AI)-driven property developments, stronger property sales, resilient recurring income, tourism recovery, operational efficiency, and integrated smart ecosystem expansion.

Technicals: NexG Bhd (5216, Technical Buy)

Support level	Share price	Resistance level	Share price
1^st support	RM0.260	1^st resistance	RM0.305

NEXG remains positive on its outlook, supported by favourable economic conditions, the anticipated rollout of the new MyKad and passport programmes, and its focus on operational execution, strategic partnerships and innovation.

Technicals: Orkim Bhd (5348, Technical Buy)

Support level	Share price	Resistance level	Share price
1^st support	RM0.870	1^st resistance	RM0.935

ORKIM is well-positioned for FY26, underpinned by secured charter contracts, resilient fleet utilisation, and limited geopolitical exposure, while maintaining operational efficiency, disciplined cost and safety management.

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