KUALA LUMPUR - Malaysia must be ready to handle the economic impact of a prolonged conflict in the Middle East, said the National Security Council.

In a statement, the council said a special meeting chaired by Prime Minister, Datuk Seri Anwar Ibrahim today will be followed by another meeting of the National Economic Action Council tomorrow.

“The government will adopt a comprehensive and coordinated approach to address the situation,” it said.

The council said Malaysia will also take a proactive role in supporting efforts to resolve the conflict.

It added that Anwar, Foreign Minister Datuk Seri Mohamad Hasan and security agency leaders are already in contact with their international counterparts.

“Except for Israel, Malaysia has good relations with all the main players in this issue; its consistent position, neutrality and candour have lent the nation respect.

“For example, today the prime minister held telephone conversations with the leaders of New Zealand, Japan, Bahrain and the United Arab Emirates,” the statement read.

The government also welcomed the ongoing ceasefire and said it should be used for meaningful negotiations.

It noted that the ceasefire has helped reduce global oil prices.

Iran had earlier closed the Strait of Hormuz following US-Israel strikes this month, pushing crude oil prices to about US$100 (RM395.65) per barrel.

The rise in global oil prices has yet to significantly affect domestic fuel costs due to subsidies to Malaysia, but prolonged volatility may increase pressure on government spending and consumer prices.