Rupiah Nearly Touches Rp 17,000 Per US Dollar as Rising Oil Prices Shake Markets

Jakarta — The Indonesian rupiah weakened sharply to nearly touch the psychological level of Rp 17,000 per US dollar during trading on Monday (9 March 2026). This sharp depreciation occurred amid escalating geopolitical tensions in the Middle East, which translated into soaring global oil prices.

Pressure extended beyond currency markets. The composite stock index (IHSG) also experienced sharp weakness, declining nearly 5 per cent at the start of the week before recovering somewhat.

Currency and commodities observer Ibrahim Assuaibi stated that the rupiah and IHSG weakness during early-week trading was influenced by a combination of external and domestic factors that made market sentiment extremely sensitive.

According to Ibrahim, Iran’s new leadership is known for fundamentalist views and could potentially prolong geopolitical conflict in the Middle East region. He estimated that conflict in the region could persist for a considerable period.

“There has been a change in leadership in Iran, and the new leader is also a fundamentalist Islamic leader, so it is likely that over the next six months, the war in the Middle East will continue,” he explained.

Ibrahim noted that this situation has direct implications for global energy distribution routes, particularly following disruptions to the Strait of Hormuz, which serves as a primary shipping lane for crude oil exports from the Middle East.

The Strait of Hormuz is a critical route for oil exports from major producing nations including Saudi Arabia, Iraq, and the United Arab Emirates. When this route faces disruptions, several energy-producing nations have begun reducing output as a precautionary measure against heightened security risks.