RRI.CO.ID, Jakarta - Jakarta Governor Pramono Anung cautioned that escalating tensions between Iran and the United States could have direct economic consequences for Indonesia’s capital, should the Strait of Hormuz be closed.

“If the Strait of Hormuz is shut down, it will affect supply chains and drive up prices,” Pramono said while opening the JIS Ramadan Festival in Jakarta on Sunday, March 1, 2026, as quoted by Antara.

The Strait of Hormuz, a narrow 33‑kilometer waterway between Oman and Iran, connects the Persian Gulf with the Gulf of Oman and serves as one of the world’s most strategic energy trade routes. Roughly one‑fifth of global oil exports pass through this corridor, including shipments from Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq bound for international markets.

Despite the risks, Governor Pramono urged Jakarta residents not to panic, stressing that the provincial administration's priority is ensuring the availability of essential goods ahead of Eid al‑Fitr.

“The main concern of the provincial administration is the availability of basic necessities,” he said, pointing to red chili, rice, and meat as key commodities, assuring that “the stock of these essentials is more than sufficient. On meat supplies specifically, he added, “availability and stock remain safe.”

The governor emphasized that the provincial administration continues to monitor market prices and inflation trends. “We monitor all major markets in Jakarta, and there has been no increase,” he noted, adding that anticipatory measures would be taken if sudden price spikes occur.

Economic analysts have also raised alarms over the potential fallout. Mohammad Faisal, Executive Director of the Center of Reform on Economics (CORE) Indonesia, warned that recent Israeli strikes on Iran which triggered a massive explosion on Saturday, February 28, could further destabilize global oil markets.

“At present, oil prices are around USD 70 per barrel. But if the conflict continues, prices could rise to USD 80 per barrel,” Faisal explained, Sunday.

He cautioned that any disruption in Hormuz could push prices even higher. “If oil supplies in the Strait of Hormuz are disrupted, prices could reach USD 100 per barrel. If it reaches USD 100 per barrel, that enters the high zone, a record. In recent years we have not experienced such a sharp increase, the last time was at the start of the Russia‑Ukraine war,” Faisal concluded.

With about 20 percent of global oil trade flowing through the Strait of Hormuz, both international markets and local economies like Jakarta remain on edge, bracing for the potential ripple effects of a conflict far beyond their borders. ***