Jakarta. Jakarta Composite Index (JCI) extended its decline on Monday closing trading day, sliding 114 points or 1.61% as escalating conflict in the Middle East and surging oil prices rattled investor sentiment across regional markets.

The benchmark index traded within a range of 6,917 to 7,120 during the session. Trading volume reached 32.05 billion shares, with turnover totaling Rp 15.91 trillion ($935.98 million) from more than 1.67 million transactions. Market breadth was negative, with 189 stocks advancing, 542 declining, and the rest unchanged.

Among the day’s biggest gainers were Prasidha Aneka Niaga (PSDN), which surged 34.53%, followed by Rockfields Property Indonesia (ROCK) rising 24.78%, Inter-Delta (INTD) gaining 24.76%, and FKS Multi Agro (FISH) climbing 24.63%.

On the losing side, Pool Advista Finance (POLA) dropped 14.94%, Dua Putra Utama Makmur (DPUM) slid 14.89%, Nusantara Almazia (NZIA) declined 14.73%, and Tigaraksa Satria (TGKA) also fell 14.73%.

Pilarmas Investindo Sekuritas said the Indonesian market and other Asian equities remained under pressure as investors monitored geopolitical tensions and volatile oil prices.

According to the brokerage, the conflict has pushed energy prices higher and heightened concerns about supply disruptions that could reignite global inflation, raising risks for economic growth. Over the weekend, the United States struck military targets on Kharg Island, Iran’s main oil export hub.

“Meanwhile, market participants are considering reports that the United States will soon announce a coalition of countries to escort ships through the Strait of Hormuz,” Pilarmas wrote in a research note on Monday.

Former US President Donald Trump had earlier suggested the war with Iran could last several more weeks and said Washington would coordinate with regional partners to restore oil flows. The conflict has threatened oil infrastructure and kept the Strait of Hormuz effectively closed.

“Higher energy costs and rising inflationary pressure have reduced expectations that the US Federal Reserve and other major central banks will cut interest rates,” Pilarmas said.

Domestically, the surge in global oil prices has also raised concerns about fiscal pressure on the state budget, with investors worried it could widen Indonesia’s fiscal deficit. Earlier, the Coordinating Economic Affairs Minister warned that maintaining the 3% fiscal deficit ceiling could become difficult if oil prices continue rising, even suggesting a possible emergency regulation to allow the deficit to exceed that level.

“Regarding the proposal, the market believes the government should maintain fiscal discipline by improving spending efficiency so the state budget is not overly burdened,” Pilarmas said.

The brokerage added that maintaining fiscal discipline is crucial for preserving credibility with international rating agencies and global investors, as confidence depends on the government’s consistency in maintaining prudent fiscal management.

Global energy markets remained volatile. Brent crude traded near $105 per barrel on Monday, rising 1.6% to $104.73 after briefly topping $106 earlier in the session. Prices have surged more than 40% since the war began.

US benchmark crude gained 1% to $99.68 per barrel, bringing its increase to nearly 50% since the conflict erupted.

In Asia, markets closed mixed. Japan’s Nikkei fell 0.13% to 53,751, while China’s Shanghai Composite declined 0.26% to 4,084. Meanwhile, South Korea’s Kospi climbed 1.14% to 5,549, and Hong Kong’s Hang Seng advanced 1.44% to 25,833.

On Friday, Wall Street also extended losses as oil prices surged above $100 per barrel, intensifying inflation concerns. The S&P 500 fell 0.6% to 6,632.19, bringing its year-to-date decline to 3.1%. The Dow Jones Industrial Average dropped 0.3% to 46,558.47, while the Nasdaq Composite lost 0.9% to 22,105.36, marking a third straight weekly loss for all three indexes.

Iran has retaliated against Israeli and US attacks by effectively halting cargo traffic through the Strait of Hormuz, a narrow passage that typically handles about one-fifth of the world’s oil shipments.

According to independent research firm Rystad Energy, more than 12 million barrels of oil equivalent per day have been taken offline since the strait’s closure.

However, some tankers have reportedly passed through the channel, adding to uncertainty.

“The truth is that at this point, much of the market is operating in the fog,” Stephen Innes of SPI Asset Management said in a commentary. “For context, the strait normally handles roughly 25 oil and LNG tankers every single day.”

If the conflict continues to disrupt production and transportation from the Persian Gulf, analysts warn it could trigger a sharp surge in global inflation.

Members of the International Energy Agency have released a record 400 million barrels of oil from emergency reserves, though the move has so far done little to calm markets.

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