March 25, 2026 | 03:41 pm
TEMPO.CO, Jakarta - Indonesia’s rupiah opened lower against the U.S. dollar on Wednesday morning, pressured by continued risk-off sentiment in global markets as the Strait of Hormuz remained closed and oil prices stayed elevated amid tensions involving Iran, the United States, and Israel.
At the opening of trading in Jakarta, the rupiah weakened by 22 points, or 0.13 percent, to Rp16,920 per U.S. dollar, from the previous close of Rp16,898 per dollar.
Lukman Leong, a currency analyst at Doo Financial Futures, said the rupiah’s decline was mainly driven by investor caution over the continued closure of the Strait of Hormuz, a critical shipping lane for global energy supplies.
“Overall sentiment remains risk-off, oil prices are still high and the Strait of Hormuz remains closed, while investors are still not fully convinced and continue to closely monitor developments,” Lukman told ANTARA on Wednesday.
According to Antara, citing Sputnik, Iran said transit vessels not affiliated with the United States or Israel may still pass through the Strait of Hormuz. The disruption followed joint U.S. and Israeli military operations against Iran.
The Strait of Hormuz is one of the world’s most important routes for transporting crude oil and liquefied natural gas from the Persian Gulf to international markets. Any disruption to traffic through the narrow waterway can directly affect oil exports and production across the region.
Lukman said West Texas Intermediate (WTI) crude was trading at US$88 per barrel, while Brent crude stood at US$98 per barrel, reflecting ongoing concerns over supply risks.
At the same time, there were signs of possible de-escalation after reports emerged that the United States had presented Iran with a proposal that could help end the conflict.
Anadolu reported that U.S. President Donald Trump said he had ordered a five-day pause in attacks on power generation and energy infrastructure, citing what he described as “very good and productive” talks with Tehran over the past two days.
However, Iranian Parliament Speaker Mohammad Bagher Ghalibaf denied that Tehran was holding negotiations with Washington, calling the reports “fake news” aimed at manipulating oil and financial markets.
Ghalibaf added that the Iranian public was demanding punishment that would be “full and regrettable” for the aggressors, and said Iranian officials remained firmly aligned with the country’s leadership and people until their war objectives were achieved.
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