Oil prices continue to surge due to the US-Israel conflict against\nIran and the increasingly volatile situation in the Middle East. The\nprice of one barrel (159 litres) of Brent crude oil from the North Sea\nrose 29 percent in the early hours of Monday to $120 per barrel (2\nmillion rupiah). On Monday morning, the price fell to $107 (1.8 million\nrupiah), but this remained 15 percent higher than trading levels on\nFriday.<\/p>\n
The increase in US-based WTI oil was slightly steeper. WTI crude\njumped 21 percent in the early hours of Monday to $120 per barrel (2\nmillion rupiah) and last traded around $113 (1.9 million rupiah),\napproximately one-quarter higher than Friday evening\u2019s price.<\/p>\n
Based on both price benchmarks, oil prices have surged nearly 50\npercent since the US-Israel war against Iran began on 28 February.<\/p>\n
Indonesian Domestic Oil Prices Remain Stable<\/p>\n
According to information released by Antara news agency, Indonesian\ndomestic oil prices remained stable from the beginning of March 2026.\nThe rise in global crude oil prices has not directly translated into\nincreased domestic fuel prices in Indonesia. This is related to the\ngovernment\u2019s price formula determined through the Indonesian Crude Price\n(ICP) indicator, the US dollar exchange rate, and government fuel\nsubsidies.<\/p>\n
In an interview with Reuters on Monday (9\/3), Indonesian Finance\nMinister Purbaya Yudhi Sadewa plans to absorb the impact of rising oil\nprices using the state budget and by increasing allocations to finance\nfuel subsidies.<\/p>\n
Indonesia has budgeted 381.3 trillion rupiah for energy subsidies and\ncompensation to state-owned energy company Pertamina and utility company\nPLN to maintain affordable fuel prices and electricity tariffs. This\nbudget was based on assumptions of average Indonesian crude oil prices\nof $70 per barrel and an average rupiah exchange rate of 16,500 per\ndollar in 2026.<\/p>\n
\u201cEven if global oil prices rise, we will absorb the crisis with the\nbudget and will do our best to control its impact,\u201d said Finance\nMinister Purbaya.<\/p>\n
In the Reuters interview, Purbaya added that if crude oil prices\nreach $90-$92 per barrel this year, the budget deficit could potentially\nwiden to approximately 3.6 percent of GDP, above the government\u2019s\ndeficit ceiling of 3 percent of GDP.<\/p>\n
In that scenario, he added that the government would cut spending to\nensure compliance with the deficit limit.<\/p>\n
Asian Stock Markets Plummet<\/p>\n
Stock markets in East Asia plummeted due to the surge in oil prices.\nIn Tokyo, the Nikkei index, comprising 225 major Japanese stocks, fell\nmore than five percent at closing.<\/p>\n
Significant losses also occurred in South Korea\u2019s stock market. In\nSeoul, share prices fell nearly six percent. In Indonesia, the IHSG\nrecorded a decline of approximately 3.27 percent at close, with nearly\nall stock sectors weakening\u2014the transport and logistics sector crashed\nby 5.22 percent. Germany\u2019s main index, the DAX, also began the week with\nsharp trading declines.<\/p>\n
Asia is heavily dependent on oil and gas imports from the Middle\nEast. \u201cJapan and South Korea are massive industrial engines powered by\nimported oil. If crude oil prices surge, the impact is directly felt by\ncompanies,\u201d explained analyst Stephen Innes from SPI Asset\nManagement.<\/p>\n
Japanese media reported that Tokyo is considering releasing its\nstrategic oil reserves.<\/p>\n
Strait of Hormuz Closure Impacts Production Decline<\/p>\n
The Strait of Hormuz cannot remain closed indefinitely, yet it\nremains the core of oil market turmoil. Since US and Israeli attacks on\nIran and Iran\u2019s retaliatory strikes against Israel and Gulf states,\nvirtually no ships can transit the strait located between the Persian\nGulf and the Gulf of Oman.<\/p>\n
Before the war, approximately one-fifth of global oil trade was\ntransported daily through this strategic route. The route is also\ncritical for liquefied natural gas transportation, for example from\nQatar. Many investors worry that the situation in the Middle East will\ncontinue to deteriorate, disrupting and reducing oil production in the\nregion.<\/p>\n
Serious Consequences for Energy Supply<\/p>\n
Last weekend, Qatar\u2019s Energy Minister Saad al-Kaabi warned in an\ninterview with the Financial Times of serious consequences from the\nMiddle East war on energy supply from the region. He stated there is a\npossibility that all producers in the Persian Gulf may have to halt\nproduction within a few weeks. If this occurs, he said oil prices could\nrise to $150 per barrel.<\/p>\n
Qatar is one of the world\u2019s largest liquefied natural gas producers,\nsupplying one-fifth of global liquefied natural gas demand. The war that\nerupted in late February caused the Arab country to halt its liquefied\nnatural gas exports for several days.<\/p>\n
Iran Attacks Oil Refinery in Bahrain<\/p>\n
Following Iran\u2019s latest attack on an oil refinery in Bahrain,\nstate-owned oil and gas company Bapco Energies declared a \u201cforce\nmajeure\u201d condition regarding its energy shipments. This declaration\nlegally exempts the party in the contract from delivery obligations.<\/p>\n
In the attack, Bahrain\u2019s large Maameer oil refinery complex was\ndamaged. The facility had also been attacked by Iran days earlier.\nBahrain is the smallest oil producer among Gulf states, but is part of\nthe OPEC+ oil producers alliance.<\/p>\n
Natural Gas Prices Rise 30 Percent<\/p>\n
European natural gas prices also surged due to the Middle East war.\nOn the Amsterdam exchange, TTF, the benchmark for European gas markets,\nshowed a jump of up to 30 percent, reaching 69.70 euros (1.3 million\nrupiah) per megawatt hour (MWh). Afterwards, the price fell to 61.80\neuros (1.2 million rupiah). This price was approximately 16 percent\nhigher than Friday\u2019s price (6\/3).<\/p>\n
With this latest price, European natural gas has increased\nsignificantly and represents a substantial jump.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/oil-prices-reach-100-dollars-shake-stock-markets-1773129325", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }