Jakarta. Jakarta Composite Index (JCI) clawed back into positive territory on Tuesday, rebounding to 7,122, adding 31 points or 0.43% as investors cautiously re-entered the market despite lingering global uncertainty tied to the Iran conflict.

In early trading, the benchmark index moved within a narrow range of 7,122 to 7,155. Market activity showed moderate participation, with 1.54 billion shares traded, generating Rp 795.47 billion ($46 million) in turnover across more than 84,000 transactions. Gainers outpaced decliners, with 346 stocks rising, 119 falling, and 188 unchanged.

Global sentiment remained fragile after Wall Street delivered mixed performances overnight, as oil prices continued climbing amid uncertainty over the duration of the Iran conflict.

The S&P 500 fell 0.4%, extending its decline to 9.1% below its record high earlier this year. The Dow Jones Industrial Average edged up 0.1%, while the Nasdaq Composite dropped 0.7%.

Market volatility followed a weekend escalation in the conflict, including the involvement of Houthi forces in Yemen, adding to concerns over energy supply disruptions. Investors are closely watching whether oil and gas flows through the Strait of Hormuz, a critical global energy route, can normalize in time to avoid a spike in global inflation.

Shortly before US markets opened on Monday, President Donald Trump said on social media that “great progress has been made” toward establishing “a new, and more reasonable, regime to end our military operations in Iran.” However, he also warned of the possibility of “blowing up and completely obliterating” Iranian power plants if negotiations fail and the Strait of Hormuz is not reopened immediately.

The remarks reflected a pattern seen in recent days, where optimism over diplomatic progress is quickly overshadowed by renewed threats, leaving investors increasingly cautious. While some market participants are starting to discount Trump’s statements, lower equity valuations following the sell-off are beginning to attract selective buying interest.

Domestically, Kiwoom Sekuritas Indonesia said the government is set to unveil a mitigation policy package later on Tuesday at 7 p.m. Jakarta time, aimed at cushioning the economic impact of the US–Israel–Iran conflict.

“These policies include work-from-home options, budget adjustments, and strengthening energy programs such as B-50 to dampen global pressure,” Kiwoom said.

“This step is taken amid surging energy prices due to supply disruptions, particularly from the Strait of Hormuz. The policy serves as the primary response to maintain domestic economic stability amidst inflation risks and rising energy costs,” it added.

Separately, President Prabowo Subianto attended the Japan-Indonesia Business Forum in Tokyo, securing 10 business agreements worth $23.1 billion. The deals span industrial, energy, and technology sectors, underscoring efforts to deepen bilateral economic ties.

Across the region as of 9:13 a.m. Jakarta time, Japan’s Nikkei rose 0.10% to 51,924, while South Korea’s Kospi fell 0.85% to 5,232. Hong Kong’s Hang Seng gained 0.25% to 24,813, and China’s Shanghai Composite advanced 0.47% to 3,941.

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