Tengku Zafrul said Malaysia was a trading nation with high-value exports and imports transported through the region’s airspace.

“When routes are unsafe, flights have to be diverted or cancelled. This means longer flights to Europe, an increase in fuel costs, and risk of air cargo delays.

“When deliveries are delayed, costs rise and the prices (of goods) also increase,” he said in a social media post.

Tensions in the Middle East escalated after the US and Israel launched attacks on Iran on Saturday, sparking retaliatory strikes on Israeli territory as well as on US military facilities in the Middle East.

Tengku Zafrul said the oil market also reacted quickly as Iran was located near one of the world’s most critical oil routes.

“When the conflict intensifies, oil prices surge as markets fear disruptions to oil supply. Hence oil prices rise, logistics costs increase, and (goods) prices also go up.”

Tengku Zafrul said that when the world is unstable, investors tend to seek safe haven assets such as the US dollar and gold, which in turn puts pressure on the ringgit through capital outflows.

“When the ringgit comes under pressure, imports become more expensive,” he added.

He also said that the impact of the conflict on Malaysians would depend on how long the conflict lasts. “If it is brief, the impact will be limited. If it drags on, we must be prepared,” he said.