Indonesian Stocks Plunge Amid US-Iran Tensions and Soaring Oil Prices

Indonesian stocks took a hit on Tuesday, falling 0.43% to 6,121 as concerns over US-Iran tensions drove up oil prices to above $107 per barrel.

The uncertainty surrounding negotiations between the two countries kept oil prices elevated, and investors worried that energy-driven inflation could prompt central banks to keep interest rates higher for longer, according to Pilarmas Investindo Sekuritas.

Brent crude rose above $107 per barrel as Iranian officials expressed doubts about reaching a deal before the US midterm elections in November. Global bond yields also rose amid expectations of tighter monetary policy to contain energy-driven inflation.