Kuala lumpur: The Kuala Lumpur rubber market rebounded from yesterday's losses to close higher on Thursday, supported by a recovery in crude oil prices amid mixed signals from regional rubber futures markets, said a dealer. The dealer noted that rubber prices also remained supported by tightening supply, as indicated by statistics and reports showing declining production.

According to BERNAMA News Agency, oil prices jumped on Thursday as Iran intensified attacks on oil and transport facilities across West Asia. This escalation has raised fears of a prolonged conflict and potential disruptions to oil flow through the Strait of Hormuz. At the time of writing, Brent crude oil prices rose 6.16 per cent, reaching US$97.63 per barrel.

Additionally, the Department of Statistics Malaysia (DoSM) reported a decrease in Malaysian natural rubber production. The production dropped by 0.4 per cent to 28,579 tonnes in January 2026 compared to 28,684 tonnes in December 2025, marking a 5.9 per cent decline from 30,357 tonnes year on year.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 increased by 0.5 sen to 790 sen per kilogramme (kg), while latex in bulk decreased by five sen to 660 sen per kg. However, further gains in the rubber market were capped by concerns over inflation stemming from escalating conflicts in West Asia, as well as subdued buying interest.