Jakarta. Jakarta Composite Index (JCI) plunged on Friday as soaring global oil prices and escalating tensions in the Middle East sparked a broad sell-off in risk assets.

The benchmark index dropped 3.05% or 224 points to 7,137, moving within a trading range of 7,132 to 7,350.

Trading remained active with 28.46 billion shares changing hands. Total turnover reached Rp 13.65 trillion ($804.99 million) across more than 1.6 million transactions. Market breadth was sharply negative, with 629 stocks declining, 104 advancing, and 86 unchanged.

Among gainers, Prasidha Aneka Niaga (PSDN) surged 34.95%, Rockfields Property (ROCK) climbed 24.86%, Asia Pramulia (ASPR) jumped 24.82%, and Duta Pertiwi (DUTI) rose 24.81%.

On the losing side, Hotel Fitra International (FITT) fell 14.75%, Fortune Indonesia (FORU) dropped 14.75%, Aesler Grup International (RONY) slid 14.74%, and Fast Food Indonesia (FAST) declined 14.71%.

Pilarmas Investindo Sekuritas said global equity markets were pressured by a surge in crude prices following escalating geopolitical tensions in the Middle East. WTI and Brent crude have both climbed above $95 and $100 per barrel, respectively.

The brokerage said the spike was triggered by threats from Iran to shut the Strait of Hormuz, a crucial route for global energy trade.

“Roughly 20% of the world’s oil flows through the strait, and attacks on ships in or around the area have already heightened concerns over the scale of supply disruption and persistent shipping bottlenecks,” analysts at Mizuho Bank wrote in a commentary.

Reports also suggest that Iran’s Supreme Leader, Mojtaba Khamenei, remains committed to maintaining the closure of the Strait of Hormuz and intensifying attacks on energy and transportation infrastructure in the region, raising fears of disruptions to global energy supply.

At the same time, US President Donald Trump has taken a firm stance, saying efforts to prevent Iran from acquiring nuclear weapons are more important than concerns about rising oil prices.

According to Pilarmas, the combination of geopolitical tensions and surging energy prices has revived concerns over global inflation, which could prompt major central banks, including the US Federal Reserve, to maintain tight or hawkish monetary policies.

“This situation pressures risk assets, including equities, as investors tend to adopt a more defensive stance,” Pilarmas said.

Domestically, the brokerage warned that rising oil prices could also weigh on Indonesia’s economy. Higher crude prices risk exceeding the assumption used in the state budget (APBN) and could increase the government’s energy subsidy burden.

“If oil prices continue to rise, the government may need to adjust domestic fuel prices to maintain fiscal sustainability,” Pilarmas said.

Pilarmas added that higher fuel prices could trigger broader increases in goods and services because energy is a key component across supply chains, potentially slowing domestic economic activity.

Asian markets also retreated on Friday while oil prices again climbed above $100 per barrel, reflecting persistent anxiety over the Iran conflict and its potential impact on global energy supply.

Japan’s Nikkei 225 slipped 1.2% to 53,819, with technology stocks among the biggest losers as SoftBank Group fell 4.5%. South Korea’s Kospi declined 1.7% to 5,487.

Hong Kong’s Hang Seng lost 1% to 25,450, while China’s Shanghai Composite dropped 0.8% to 4,095.

Wall Street also ended lower overnight amid volatile trading this month. The S&P 500 fell 1.5%, the Dow Jones Industrial Average dropped 1.6%, and the Nasdaq Composite slid 1.8%.

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