Jakarta. Jakarta Composite Index (JCI) closed lower on Thursday as fears of a wider conflict in the Middle East intensified after reported US strikes on Iran, while concerns over rising fuel prices at home added to inflation worries.

JCI fell 16 points, or 0.28%, to close at 5,886 after trading between 5,784 and 6,010. Trading volume reached 33.4 billion shares with turnover of Rp 22.2 trillion ($1.23 billion) across more than 2.37 million transactions. Losers outnumbered gainers, with 419 stocks declining, 256 advancing, and 131 unchanged.

Pilarmas Investindo Sekuritas said the decline mirrored losses across most Asian markets following a weaker close on Wall Street, as investors reacted to rising geopolitical risks and renewed inflation concerns in the United States.

According to the brokerage, market sentiment was largely driven by the escalating conflict between the United States and Iran. The US military reportedly launched strikes against Iran, raising fears that ongoing peace efforts could collapse and trigger a prolonged conflict.

“US President Donald Trump had previously accused Iran of delaying peace negotiations and warned of further attacks if Iran failed to sign a peace agreement,” Pilarmas wrote in its daily research note on Thursday.

The brokerage added that Iran had responded by targeting US vessels in the Strait of Hormuz, further unsettling markets after Tehran announced a suspension of shipping traffic through the strategic waterway.

Domestically, Pilarmas highlighted the recent increase in the price of non-subsidized Pertamax fuel, which could affect household purchasing power. Although the government has kept subsidized Pertalite prices unchanged, higher Pertamax prices may encourage consumers to switch to subsidized fuel, potentially increasing pressure on the country's energy subsidy quota.

“The market is monitoring the risk of higher inflation resulting from rising transportation costs, which could eventually affect the prices of goods and services,” Pilarmas said.

Asian markets traded mixed on Thursday following another sell-off in artificial intelligence-related stocks that dragged US equities sharply lower.

Japan’s Nikkei 225 edged up less than 0.1% to 64,217 after recovering from earlier losses, while South Korea’s Kospi gained 0.4% to 7,763. Hong Kong’s Hang Seng Index fell 0.9% to 24,180, and China’s Shanghai Composite slipped 0.2% to 3,987.

On Wall Street, AI-linked technology stocks remained under pressure. The S&P 500 dropped 1.6% to 7,266.99, marking its first consecutive decline in three weeks and bringing the benchmark index back to levels last seen in early May.

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