Jakarta. Rupiah extended its slide on Tuesday, breaching the psychologically key Rp 17,000 per US dollar mark as escalating Middle East tensions rattled global markets and drove energy prices higher.

The Indonesian currency closed down 39 points in afternoon trading at Rp 17,041 per dollar, reversing an earlier gain of 8 points from the previous close of Rp 17,002.

Ibrahim Assuaibi, director at Traze Andalan Futures, said the rupiah’s persistent weakness was largely driven by disruptions to global energy routes, particularly the closure of the Strait of Hormuz amid the intensifying conflict involving Iran.

He noted that the disruption has triggered a surge in global oil prices, adding pressure on emerging market currencies including the rupiah.

The currency also came under renewed strain as geopolitical risks escalated following missile attacks by Iran-aligned Houthi forces in Yemen targeting Israel, raising fears of broader regional instability.

The situation has sparked fresh concerns over potential disruptions in the Bab el-Mandeb Strait, a critical chokepoint linking the Red Sea and the Gulf of Aden, which serves as a key shipping route between Asia and Europe via the Suez Canal.

Further pressure stemmed from remarks by US President Donald Trump, who warned that Washington would “destroy” Iran’s energy infrastructure and oil facilities if Tehran refuses to reopen the Strait of Hormuz, following its rejection of a US peace proposal.

“However, the White House said on Monday that talks with Iran are ongoing and progressing well, noting that Tehran’s public statements differ from what it conveys privately to US officials,” Ibrahim said.