Airlangga warns that US-Iran conflict disrupts global oil supply

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that the escalation of conflict between the United States, Israel, and Iran is disrupting global oil supplies and driving up world energy prices.

This situation follows Iran’s decision to close the Strait of Hormuz, which has long served as a principal global oil distribution route.

“Certainly, if Iran is involved, what will be disrupted is the oil supply, and the oil supply has been disrupted because the Strait of Hormuz is affected. Not to mention the Red Sea. So we will see how long this conflict will continue,” Airlangga said at his office in Jakarta on Monday.

In response to this situation, Airlangga stated that the government has anticipated potential supply disruptions by securing import sources from outside the Middle Eastern region.

“The government already has a Memorandum of Understanding to obtain supplies from non-Middle East sources. For example, recently Pertamina has already made an MoU with America, several with Chevron, with ExxonMobil, and others,” he said.

When asked whether the geopolitical conflict would affect economic growth, Airlangga assessed that the impact would largely depend on the duration and intensity of the conflict. This is because, in addition to oil supplies, the logistics and tourism sectors also risk being affected.

“It comes back to us monitoring whether this conflict lasts a long time, or a 12-day war, or how far this conflict will go,” he added.