Jakarta. Jakarta Composite Index (JCI) slid 1.23% on Tuesday as escalating tensions between the United States and Iran, alongside Bank Indonesia’s recent rate hike, pressured investor sentiment across the market.

The benchmark index dropped 76 points to 6,130 after moving between 6,124 and 6,286 during the session.

RTI data showed trading volume reached 24.2 billion shares, with turnover totaling Rp 17.74 trillion ($996 million) across more than 1.9 million transactions. Decliners outpaced gainers, with 447 stocks falling, 241 advancing, and 133 unchanged.

Pilarmas Investindo Sekuritas said most Asian equity markets also weakened as hopes for a near-term peace agreement between the United States and Iran faded.

According to Pilarmas, US forces reportedly launched strikes in southern Iran, describing the operation as a defensive measure.

The military action renewed market concerns even as Washington and Tehran were previously seen moving closer toward a deal that could ease tensions and reopen the Strait of Hormuz.

“From the domestic side, market participants are also monitoring Bank Indonesia’s move to tighten monetary policy in order to maintain rupiah stability and investor confidence,” Pilarmas wrote in its Tuesday research note.

Last week, Bank Indonesia raised its benchmark interest rate by 50 basis points to 5.25%, marking the first rate hike since October last year.

Pilarmas also noted that the government had reportedly postponed planned changes to royalty tariffs and export duties to preserve the competitiveness of Indonesia’s downstream industries amid weakening global demand and rising economic uncertainty.

Asian markets traded mixed on Tuesday after the US military said it had carried out what it called “self-defense” strikes in southern Iran, including attacks on missile launch sites and boats allegedly laying mines.

The attacks came even as US President Donald Trump said on social media that negotiations to end the conflict were “proceeding nicely.”

The US military said the strikes on Monday were conducted “to protect our troops from threats posed by Iranian forces.” It added that restraint was exercised due to the ceasefire with Iran, although Tehran has yet to issue an official response.

With uncertainty surrounding the status of peace negotiations, global markets continued to react to developments and comments from Trump.

In Asia, Japan’s Nikkei 225 fell 0.3% to 64,996 after retreating from a record close on Monday.

Hong Kong’s Hang Seng Index rose 0.4% to 25,700, while China’s Shanghai Composite Index slipped 0.2% to 4,143.

South Korea’s Kospi jumped 2.6% to 8,047 as investors returned from Monday’s market holiday.

US markets were closed Monday for the Memorial Day holiday, while European equities ended higher.

On Friday, the S&P 500 gained 0.4%, the Dow Jones Industrial Average climbed 0.6%, and the Nasdaq Composite added 0.2%.

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