Jakarta. Indonesian stocks plunged 2.59% to close at 5,936 on Monday as escalating Middle East tensions heightened concerns over oil supply disruptions, while investors braced for key inflation data from the United States and economic indicators from China.

Trading volume reached 62 billion shares, with a total transaction value of Rp 13.7 trillion ($764.59 million) and more than 1.8 million transactions. A total of 114 stocks rose, 602 fell and 77 remained unchanged.

Pilarmas Investindo Sekuritas said Indonesian stocks faced mounting negative sentiment, ranging from intensifying Middle East conflict and oil price volatility risks to uncertainty over US inflation and Chinese economic data, both of which could influence global market direction.

“Jakarta Composite Index weakened today as Asian stock markets moved mixed. Investors are monitoring geopolitical developments and the global economic outlook, which remains clouded by uncertainty,” Pilarmas said in its research note on Monday.

The Middle East tensions were among investors’ main concerns. An attack by Iran-backed Houthi militants on a major Saudi Arabian airport added to fears that the conflict could spread across the region.

US President Donald Trump said he was considering US involvement in retaliatory action against the Houthis in Yemen.

“These developments add to geopolitical uncertainty, which could affect sentiment in global financial markets,” Pilarmas said.

Meanwhile, global oil prices fell after Trump said his administration had reached an agreement for Russia to supply hundreds of thousands of tons of diesel fuel. He also claimed Russia and Ukraine were close to agreeing on an energy ceasefire.

Despite the decline in oil prices, geopolitical risks remain a concern as further escalation could disrupt energy supplies and trigger commodity price volatility.

For Indonesia, a sustained increase in global oil prices could fuel inflationary pressures and strain the state budget, particularly through energy subsidies and compensation payments, Pilarmas said.

“Not only that, rising oil prices would also increase the burden on the state budget, particularly for energy subsidies and compensation,” the brokerage said.

Investors are also awaiting US inflation data this week for clues about the Federal Reserve’s interest rate outlook. Chinese economic indicators are also in focus as markets assess the country’s growth prospects amid weak domestic demand and continued reliance on exports.

Across Asia, South Korea’s Kospi fell 3.7% to 6,384.24, while Tokyo markets were closed for a holiday. Hong Kong’s Hang Seng Index gained 0.3%, while the Shanghai Composite Index slipped 0.4%.

On Friday, Wall Street ended higher, with the S&P 500 rising 0.6%, the Dow Jones Industrial Average gaining 0.8% and the Nasdaq Composite advancing 0.6%.

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