JCI Takes Hit as Oil Prices Soar Amid US-Iran Tensions

The Jakarta Composite Index (JCI) plummeted 0.73% on Friday as investors grew increasingly concerned about disruptions to global energy supplies due to escalating US-Iran tensions.

Oil prices remained elevated after US President Donald Trump said he did not expect the Iran war to end before the US midterm elections in November, with prices unlikely to decline before then.

This could intensify inflationary pressures and increase the government's burden through energy subsidies, Pilarmas Investindo Sekuritas warned. Higher energy prices may also keep inflation elevated for longer, strengthening expectations that the Federal Reserve will maintain high interest rates for an extended period.