Anwar, who is also finance minister, said he had just chaired a meeting this evening with deputy prime minister Ahmad Zahid Hamidi, agriculture and food security minister Mohamad Sabu and other top officials to discuss the conflict in the region.

He said the government is keeping a close watch on developments and also the position of financial markets, including the potential impact on Malaysia.

“The government will take appropriate action to promote continued financial stability and orderly functioning of markets” while guarding against potential economic fallout that could affect Malaysians, he said in a statement.

Anwar said all parties in the Middle East conflict must call for an immediate end to hostilities and play their role to ensure the tensions do not escalate further.

“All parties must work on achieving a resolution to put an end to the conflict in the region. Such a solution will not be lasting if the violence that’s happening there right now is not stopped immediately.”

He said Malaysia remains strong in standing with Palestinian people who he said “continue to suffer in this terrible situation”.

Iran is reported to have launched 290 missiles and drones, including 100 ballistic missiles, in its first direct attack on Israel. The attack was in response to an Israeli airstrike on an Iranian diplomatic building in Damascus, killing senior officials.

Capital markets ready to meet volatility

The Securities Commission and Bursa Malaysia said the Malaysian capital market was equipped to address volatility in the face of the Middle East developments, but monitoring and surveillance would be increased to ensure stability.

“Our market fundamentals remain strong and our intermediaries are well capitalised. We also have a robust system in place to ensure continuous and effective clearing and settlement of trades,” the two bodies said in a joint statement.

Necessary controls were in place to meet potential sharp increases in volatility in the equity market, they said.