Jakarta. Jakarta Composite Index (JCI) edged lower on Tuesday morning as escalating tensions in the Strait of Hormuz rattled global markets, with investors weighing rising oil prices against steady domestic inflation.

The benchmark index slipped 3 points, or 0.05%, to 6,926 in early trade, moving within a range of 6,945 to 6,971.

Data from RTI showed 1.24 billion shares traded in the opening minutes, with a total value of Rp 393.38 billion ($22.6 million) across 88,430 transactions. Gainers outnumbered laggards slightly, with 192 stocks advancing, 216 declining, and 231 remaining unchanged.

Kiwoom Sekuritas Indonesia explained through their research on Tuesday that global sentiment turned cautious as conflict intensified in the Strait of Hormuz, after Iran stepped up attacks on ships and energy infrastructure, including a fire at a UAE oil port.

The United States responded through the “Project Freedom” initiative to secure shipping lanes, deploying 15,000 military personnel and more than 100 aircraft. Iran warned that any foreign forces entering the strait would be targeted. Tensions have resurfaced four weeks after a ceasefire, with negotiations still stalled, particularly on nuclear issues.

US stocks retreated from record highs on Monday, while oil prices surged amid fears the renewed conflict could undermine the fragile truce.

The S&P 500 fell 0.4% after hitting an all-time high, while the Dow Jones Industrial Average dropped 557 points, or 1.1%. The Nasdaq Composite slipped 0.2%.

In the energy market, Brent crude jumped 5.8% to settle at $114.44 per barrel, after the United Arab Emirates reported its oil facilities had come under attack by Iran for the first time since the early-April ceasefire. The escalation appeared linked to U.S. President Donald Trump’s push to reopen the Strait of Hormuz.

Iran’s effective closure of the strait has left oil tankers stranded in the Persian Gulf, tightening global supply and driving Brent prices sharply higher from around $70 per barrel prior to the conflict.

The US  military said two American-flagged merchant ships had successfully passed through the strait, adding that it had sunk six small boats while establishing an “enhanced security area” to protect maritime traffic.

Domestically, Kiwoom noted sentiment was partly supported by moderating inflation, with April consumer prices rising 2.42% year-on-year, easing from 3.48% previously. Core inflation stood at 2.44%, while monthly inflation was contained at 0.13%, indicating manageable price pressures.

Indonesia’s trade balance remained in surplus at $3.32 billion in March, marking the 71st consecutive monthly surplus, though below expectations. Exports contracted 3.1% year-on-year, while imports grew a modest 1.51%, reflecting weakening external demand and softer domestic activity.

Fundamentals point to stable prices but slowing momentum, with the manufacturing PMI contracting again at 49.1, signaling ongoing pressure from global headwinds.

Across the region, Hong Kong’s Hang Seng Index fell 0.38% to 25,735 as of 9:05 a.m. Jakarta time, while markets in Japan, China, and South Korea were closed for public holidays.

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