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Business Standard
8 hours ago
- Business
- Business Standard
Strait of Hormuz closure risk may push Brent crude to $90, warns Citigroup
A potential shutdown of the Strait of Hormuz amid rising Gulf tensions could trigger a sharp but brief surge in crude prices, according to Citigroup analysts tracking energy markets New Delhi Brent crude prices could surge to nearly $90 a barrel if the Strait of Hormuz were to be closed, Bloomberg reported citing Citigroup Inc. Analysts at the bank, including Anthony Yuen and Eric Lee, said such a scenario would trigger a sharp but likely short-lived price spike. 'Any closure of the Strait could lead to a sharp price spike,' the analysts wrote in a recent note, referring to the bank's bullish case. 'But we think the duration should be short, as all efforts would focus on a reopening, so that it should not be a multi-month closure.' Strategic waterway moves 20% of oil The world depends heavily on oil, and a big part of that supply moves through the Strait of Hormuz. As tensions grow between Iran and Israel, this narrow waterway in West Asia is once again at the centre of global concern. Just 33 kilometres wide at its narrowest point, the Strait of Hormuz is one of the most important oil routes in the world. Its role is especially critical for energy-importing countries like India. The Strait of Hormuz, a critical chokepoint at the entrance to the Persian Gulf, sees the transit of nearly 20 per cent of the world's daily oil output. Crude shipments from key OPEC members like Saudi Arabia and Iraq pass through the narrow channel, making it vital to global energy markets. Citigroup's scenario assumes that up to three million barrels per day could be disrupted over a period of several months if the strait were blocked, the news report said. Muted impact on crude prices While tensions in the region also raise concerns about Iranian oil supply, Citigroup believes any interruption to Iran's crude exports would likely have a muted effect on prices. The bank noted that Iran's shipments have already been declining, with Chinese refineries — key buyers — reducing their purchases. Any move to block the Strait of Hormuz would raise serious concerns around the world, as it could affect a large part of the global oil supply. As of now, Brent futures are trading at around $77 per barrel. The possibility of a geopolitical escalation in the Gulf region continues to be a key factor to watch for energy markets. Israel-Iran conflict A missile fired from Iran struck the main hospital in southern Israel early Thursday, wounding several people and causing significant damage. While the injuries were not life-threatening, the facility reported extensive destruction. Israeli media broadcast visuals showing shattered windows and thick black smoke billowing from the site, the Associated Press reported. Additional Iranian missiles struck a high-rise apartment complex in Tel Aviv and other locations in central Israel. According to Israel's Health Ministry, at least 240 people were injured in the attacks, including four who are in serious condition. Israel targets Khamenei, nuclear site Israeli Defence Minister Israel Katz held Iran's Supreme Leader Ayatollah Ali Khamenei responsible for the assault. 'The military has been instructed and knows that in order to achieve all of its goals, this man absolutely should not continue to exist,' Katz said. In retaliation, Israel launched an airstrike on Iran's Arak heavy water reactor, a key site in the country's nuclear programme. Iranian state television reported no radiation threat from the attack, noting that the facility had been evacuated beforehand. 'Decision on Iran strike in two weeks' In Washington, the White House said President Donald Trump will decide within two weeks whether to launch a military strike on Iran. The administration stressed that diplomacy is still on the table. 'Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future. I will make my decision whether or not to go within the next two weeks,' White House Press Secretary Karoline Leavitt quoted Trump as saying. [With agency inputs]
Argaam
9 hours ago
- Business
- Argaam
Oil could surge to $90 if Strait of Hormuz closed: Citigroup
Brent crude could jump to around $90 a barrel if the Strait of Hormuz is shut, according to Citigroup Inc. 'Any closure of the Strait could lead to a sharp price spike,' analysts including Anthony Yuen and Eric Lee wrote in a note, citing the bank's current bullish case scenario. This is due to the strategic importance of the Strait of Hormuz, which accounted for more than a quarter of global seaborne oil trade last year and in the first quarter of 2025. Any disruption to Iranian crude exports could have a smaller price impact than expected, according to Citigroup. The country's shipments have been falling and Chinese refineries are buying less, the bank said.
Bloomberg
12 hours ago
- Business
- Bloomberg
Oil Could Spike to $90 If Strait of Hormuz Shut, Citigroup Says
Brent crude could jump to around $90 a barrel if the Strait of Hormuz is closed, according to Citigroup Inc., which added that a prolonged halt to shipping through the crucial waterway would be unlikely. 'Any closure of the Strait could lead to a sharp price spike,' analysts including Anthony Yuen and Eric Lee wrote in a note, citing the bank's current bullish case scenario. 'But we think the duration should be short, as all efforts would focus on a reopening, so that it should not be a multi-month closure.'
Yahoo
a day ago
- Automotive
- Yahoo
Hyundai boosts Malaysian presence with new direct subsidiary HMY
South Korean automaker Hyundai Motor has established its new subsidiary headquarters in Kuala Lumpur, Malaysia. The new local entity, Hyundai Motor Malaysia (HMY), marks its direct entry into the Malaysian market. The company has moved from a distributor-led model with Sime Motors to a principal-led operational strategy. This change emphasises improved customer engagement with a focus on innovation and long-term growth. HMY will oversee brand, marketing, sales, and customer experience by establishing a dedicated local team. This team will enable quicker, market-driven decisions and foster a more customer-centric approach. The new subsidiary is expanding its team to build a strong nationwide dealer network with plans to grow its workforce to 100 employees by the end of the year. HMY will launch three new models in the SUV and MPV segments. It also plans to set up local assembly operations in Kedah by Q3 2025. This facility aims to produce up to seven car models over five years. Initially, the expansion will focus on assembling internal combustion engines and hybrid electric vehicles. As production ramps up, it will export approximately 30% of locally assembled vehicles to neighbouring markets. HMY also plans to enhance its dealer and after-sales network by modernising showrooms and improving digital integration. Additionally, it will upgrade its service network, with plans to expand to 25 outlets by 2030. Eric Lee, president of Hyundai Motor Malaysia, stated that the local establishment aims to bring the strength and agility of the brand 'closer to home.' Jahabarnisa Haja Mohideen, managing director of Hyundai Motor Malaysia, remarked that the country is full of untapped potential. 'It boasts the highest passenger vehicle demand in ASEAN at 35%, with a steady GDP growth of 4.3%, signalling strong consumer confidence and rising spending power,' he added. Since 2024, Hyundai Motor has announced investments in the US, Germany, India, and Brazil, among others. "Hyundai boosts Malaysian presence with new direct subsidiary HMY" was originally created and published by Investment Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
New Straits Times
2 days ago
- Automotive
- New Straits Times
Hyundai shuifts gears, establishes direct brand presence in Malaysia
HYUNDAI Motor Company marks a milestone with the establishment of Hyundai Motor Malaysia, a newly-formed local entity following the brand's direct entry into the market. The move represents Hyundai's evolution from a distributor-led model under Sime Motors to a principal-led operational approach. This is underpinned by deeper market commitment, enhanced customer engagement and a renewed focus on innovation and long-term growth, the Korean carmaker said. As part of Hyundai's broader global strategy to strengthen ties in key growth markets in line with its brand vision to drive 'Progress for Humanity', the company said the transition reinforces Malaysia's strategic importance to the brand's future. "This transition will see Hyundai taking the driver's seat, assuming full responsibility for brand, marketing, sales, and customer experience, with a dedicated local team empowered to make faster, market-relevant decisions and deliver a more connected, customer-first approach," it added. Hyundai said it is actively expanding its dedicated Malaysian team, laying the foundation for a robust nationwide dealer network and will be launching a series of on-ground initiatives designed to embed the Hyundai brand more deeply into the local automotive landscape. With a growing workforce projected to reach 100 employees by year-end, Hyundai has firmly planted its roots by establishing its Malaysian headquarters in the heart of Kuala Lumpur's financial district, at Menara Affin @TRX. This reflects its ambition to be at the centre of innovation and progress in Malaysia. "Hyundai has always stood for progress - not just in mobility, but in how we connect with people, communities, and the future," said Hyundai Motor Malaysia president Eric Lee. "Our founder's belief in betterment and sustainable action continues to inspire us as we grow our global footprint. With the establishment of Hyundai Motor Malaysia, we are bringing the strength and agility of a global brand closer to home. "This isn't just a new chapter - it's a long-term commitment to Malaysia as a strategic hub in Asean." In the near term, Hyundai Malaysia will introduce three new models across the SUV and MPV categories. Hyundai's role extends beyond domestic sales. In collaboration with Hyundai Motor's long-standing contract assembly partner, Inokom Corporation Sdn Bhd, the company plans to establish local assembly operations in Kedah, Malaysia, expected to commence in the third quaerter of 2025. The facility plans to produce up to seven car models within five years, further integrating Malaysia into Hyundai's global manufacturing network. In line with the country's sustainability aspirations, Hyundai's manufacturing expansion will initially focus on the local assembly of internal combustion engine (ICE) and hybrid electric vehicles (HEVs) assembly. This includes This includes a mix of SUVs and MPVs designed to cater to Malaysia's growing appetite for versatile, high-specification vehicles. As production capacity grows, about 30 per cent of vehicles assembled in Malaysia are expected to be exported to neighbouring markets. Commenting on Hyundai's expansion into the Malaysian market, Jahabarnisa Haja Mohideen, managing director of Hyundai Motor Malaysia, said: "Malaysia is a market full of untapped potential. It boasts the highest passenger vehicle demand in Asean at 35 per cent, with a steady GDP growth of 4.3 per cent signalling strong consumer confidence and rising spending power." These are exactly the conditions that drive innovation and long-term investment, he added. "By collaborating with local stakeholders, Malaysia stands out as the ideal location to our expand footprint and establish a key hub in Hyundai's growth strategy in the Asia Pacific region," he said. As Hyundai embarks on a new journey in Malaysia, Sime Motors will remain a valued partner in Hyundai's journey in Malaysia, as part of its dealer network. "We are proud to have played a pivotal role in Hyundai's growth in Malaysia," said Jeffrey Gan, managing director of Sime Motors. "As Hyundai embarks on its next phase, we remain committed to supporting its sales and aftersales operations, ensuring continuity, confidence, and a seamless service experience for existing and future Hyundai customers," he added.
