Analysts: Iran-US sentiment poses short-term risk to stock market

Jakarta — Market observer Elandry Pratama has stated that the conflict between Iran, the United States, and Israel fundamentally triggers short-term pressure on global stock markets, including Indonesia, due to heightened geopolitical uncertainty.

He noted that the most immediate impact is visible in shifting investor sentiment and risk appetite at the global level.

“When tensions rise, market participants tend to reduce exposure to risky assets such as emerging market equities, causing the Indonesian composite index to correct and volatility to increase,” said Elandry in an interview with Antara in Jakarta on Monday.

Elandry assessed that the current impact remains predominantly temporary and sentiment-based in nature.

“Sustained increases in crude oil prices could trigger inflationary pressure and influence monetary policy, ultimately affecting capital flows and market stability,” he stated.

He further noted that current shifts in investor fund allocation are trending towards safe-haven assets such as gold, US dollars, and government bonds.

In the stock market, he observed that in the initial phase, investors typically first enter gold-based and energy sector stocks (oil and gas), which benefit from rising commodity prices.