Jakarta. Indonesia’s benchmark index opened under pressure as escalating geopolitical tensions pushed investors into risk-off mode, dragging the Jakarta Composite Index (JCI) down 48 points, or 0.64%, to 7,410 in early trade.

Within the first 10 minutes, trading volume reached 4.5 billion shares with turnover of Rp 1.9 trillion ($110.8 million). A total of 319,000 transactions were recorded, with 198 stocks advancing, 352 declining, and 170 unchanged.

Global sentiment remained dominated by renewed tensions between the United States and Iran following failed negotiations in Islamabad, according to Kiwoom Sekuritas Indonesia.

The marathon 21-hour talks ended without agreement, with key disagreements centered on halting Iran’s nuclear program, reopening the Strait of Hormuz, and ending support for proxy groups such as Hezbollah and the Houthis.

The US maintained a hard-line stance, demanding a full halt to uranium enrichment and dismantling of nuclear facilities, while Iran signaled it would only consider limited compromises. Tehran also asserted it would not bow to pressure and warned it was prepared to respond to any military escalation.

Tensions escalated further after President Donald Trump announced a blockade of the Strait of Hormuz and Iranian ports, applying to all global vessels.

“Effective immediately, the United States Navy, the finest in the world, will begin the process of blockading any and all ships trying to enter or leave the Strait of Hormuz. At some point, we will reach an ‘all being allowed to go in, all being allowed to go out’ basis,” Trump said via social media.

Iran responded by threatening to fully close the route until an agreement is reached. Despite a two-week ceasefire, conditions remain fragile, with Israel continuing strikes in Lebanon and triggering retaliation from Hezbollah, further complicating US–Iran negotiations.

“The market has now returned to classic risk-off mode: the dollar strengthened, oil surged, while risky assets are under pressure. High uncertainty makes it difficult for the market to perform accurate pricing, with potential for further escalation if the US resumes military attacks,” Kiwoom said.

Separately, Phintraco Sekuritas noted that US inflation data showed the Consumer Price Index (CPI) rose 3.3% year-on-year in March 2026, marking the highest level since May 2024 and in line with estimates. Meanwhile, the University of Michigan Consumer Sentiment Index dropped 11% to 47.6 in April 2026.

On the domestic front, Phintraco added that the Indonesia Stock Exchange (IDX) plans to delist 18 listed companies effective Nov. 10, 2026. Ahead of the delisting, the companies are required to conduct share buybacks between May 11 and Nov. 9, 2026.

Overnight on Wall Street, stocks were mixed as investors remained cautious ahead of potential US–Iran developments following the fragile ceasefire. The S&P 500 edged down 0.1% after choppy trading, the Dow Jones Industrial Average fell 0.6%, while the Nasdaq Composite rose 0.4%.

In Asia, markets were broadly weaker as of 8:47 a.m. Jakarta time. Japan’s Nikkei dropped 0.66% to 56,550, South Korea’s Kospi fell 0.82% to 5,811, China’s Shanghai Composite slipped 0.38% to 3,971, and Hong Kong’s Hang Seng declined 1.08% to 25,613.

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