Jakarta. Rupiah closed weaker on Thursday as escalating geopolitical risks in the Middle East and uncertainty over US monetary leadership drove investors toward the dollar.

The rupiah fell 27 points to Rp 17,353 per US dollar in the afternoon session, after briefly weakening by as much as 60 points from the previous close of Rp 17,326. Earlier in the day, the currency had already opened down 32 points, or 0.18%, at Rp 17,358.

Ibrahim Assuaibi, director at Traze Andalan Futures, said the pressure came as tensions between the US and Iran intensified, with President Donald Trump preparing a prolonged naval blockade against Iran.

The move raised concerns over potential disruptions in the Strait of Hormuz, a key route for around 20% of global energy shipments.

“A prolonged blockade along the shipping lane signals a larger disruption to global oil supply,” Ibrahim said in a statement on Wednesday.

The blockade follows the collapse of renewed peace negotiations between Washington and Tehran. Although Trump has extended a ceasefire with Iran indefinitely, both sides have largely rejected mediation efforts to restart talks.

The rupiah was also weighed down by uncertainty surrounding the expected appointment of Kevin Warsh as the next Federal Reserve chair.

Meanwhile, current Fed Chair Jerome Powell said he would remain in his role as governor until political pressures subside, warning that the central bank’s independence is at risk.