Rupiah Weakens Amid Escalating US-Iran Tensions and Oil Price Hike

The Indonesian rupiah weakened on September 1, 2026, by 0.12% to Rp17,744 per US dollar, according to data from Woori Bank analyst Rully Nova.

Rully attributed the decline in the rupiah's value to rising global oil prices, which reached US$91 per barrel, amid escalating tensions between the US and Iran.

The conflict began when US forces struck Iranian missile launchers on Larak Island on August 30, 2026. In response, Iranian armed forces reportedly launched attacks on U.S. military positions in Jordan.

Rully also mentioned that U.S. inflation expectations are 0.39% monthly and 3.6% annually, while the 10-year US government bond yield rose to 4.77% and the 20-year bond yield increased to 5.27%.