Wall Street Rises and Oil Prices Cool: Is Indonesia Ready to Continue the Party?

US stock markets rebounded, with Wall Street closing in positive territory on Wednesday, or early Thursday Indonesian time.

The stock exchanges surged on Wednesday as oil prices fell and market participants hoped that the US and Iran could reach a ceasefire agreement.

The Dow Jones Industrial Average rose 305.43 points, or 0.66%, closing at 46,429.49. Meanwhile, the S&P 500 strengthened 0.54% to 6,591.90, and the Nasdaq Composite climbed 0.77% to 21,929.83.

The Associated Press, citing unnamed officials in Islamabad, reported that Iran has accepted a 15-point proposal from the US to end the war.

The New York Times had previously reported that the US had sent a peace plan to Iran. The plan was conveyed through Pakistan.

However, Iranian state media on Wednesday also reported that the country would reject the US ceasefire offer and instead proposed a five-point plan that includes granting control over the Strait of Hormuz to Tehran.

Oil prices came under pressure following these developments. West Texas Intermediate futures contracts fell 2.2% to close at US$90.32 per barrel. Meanwhile, international Brent also dropped 2.17% to US$102.22. US government bond yields (Treasuries) also weakened alongside the decline in oil prices.

Nevertheless, the two countries still appear very far apart in their positions. The Wall Street Journal reported that the US is deploying the 82nd Airborne Division of the Army to the Middle East.

President Donald Trump said on Tuesday that the US is currently in negotiations with Iran.

He added that Tehran is speaking reasonably and signalled that Iran wants to reach a peace agreement.

This war has caused significant volatility in stock markets throughout the week.

On Tuesday, markets trimmed some of the gains from Monday, when the three major indices surged more than 1% after Trump posted on Truth Social that the US and Iran had held very good and productive talks regarding a full resolution to the conflict in the Middle East. However, Iranian state media denied any direct talks.

“There are still questions about who in Iran can control military activities and what would satisfy Israel’s interests, but the market seems to show a desire to rebound from this level,” wrote JPMorgan’s trading desk in a note to CNBC International.

“Additionally, it is unclear whether Iran will withdraw previous demands, including security guarantees against future aggression and compensation for losses during this conflict,” it added.

Gains in technology sector stocks also supported the overall market on Wednesday, with shares of Nvidia, AMD, and Intel all recording surges.

Indonesia’s financial markets, from the JCI to the rupiah, uniformly strengthened on the first trading day after the long Eid holiday.

Investor optimism emerged alongside hopes of easing global geopolitical tensions after the United States was said to be preparing a diplomatic proposal to defuse the conflict in the Middle East.

However, behind this strengthening, market participants are still monitoring developments in the geopolitical conflict, which is the main source of global volatility, awaiting several data releases, and then tracking the progress of domestic fiscal tightening plans.

The following are details of sentiments that will influence today:

Update on the War in the Middle East

The war between Iran against the United States (US) and Israel has now entered its fourth week since the conflict erupted at the end of February 2026.

Amid ongoing military escalation, signals of diplomacy are beginning to emerge behind the scenes. Reports from several international media outlets indicate that the Trump administration has sent a draft peace proposal to Tehran through Pakistan’s military chief, Field Marshal Syed Asim Munir, who is acting as an intermediary for indirect communication between the two parties.

The proposal, known as the “15-Point Proposal,” contains major demands on Iran regarding its nuclear programme and regional policies.

Among them are the dismantling of all of Iran’s military nuclear capabilities, a complete halt to domestic uranium enrichment activities, and the handover of all enriched uranium stocks to the International Atomic Energy Agency (IAEA).

Iran is also required to deactivate major nuclear facilities such as Natanz, Isfahan, and Fordow and to provide unlimited access for international inspectors.

In addition to nuclear issues, the proposal demands that Iran cease support for proxy groups in the region such as Hezbollah and Hamas, reopen the Strait of Hormuz as a safe maritime route for international trade, and limit its ballistic missile programme.

In return, the US offers full lifting of international sanctions and technological assistance for developing civilian nuclear programmes, including projects like the Bushehr power plant.

However, this diplomatic path is still overshadowed by a very high level of distrust from the Iranian side.

Several Iranian officials are reported to have conveyed to mediators that they feel they have been “tricked” twice by President Trump and do not want it to happen again.

According to sources cited by Axios, Tehran views that on two previous occasions Washington spoke of agreements or negotiations, but at almost the same time gave the green light to military operations or sudden attacks.

This has led Iran to view the latest diplomatic push with great caution and suspicion that negotiation efforts could merely be part of a military pressure strategy.

This suspicion is further strengthened because at the same time the United States is actually continuing to increase its military presence in the region. Washington is reported to be sending additional troops