RRI.CO.ID, Jakarta - Rising tensions in the Middle East are raising concerns for Indonesia's financial markets. The United States has carried out renewed strikes on Iran after delaying action since last Friday.

The renewed conflict has pushed global crude oil prices higher. After trading around $87 per barrel, oil has climbed to about $89.5 per barrel.

The latest escalation could weigh on both the Indonesian stock market and the rupiah. Although the Jakarta Composite Index (IHSG) opened stronger at 6,110, analysts believe it may face selling pressure later as geopolitical concerns grow.

Earlier, the U.S. Federal Reserve kept its benchmark interest rate unchanged at 3.75%, matching market expectations. However, investors now expect the Fed to raise interest rates in the coming months.

Higher oil prices have increased concerns about global inflation. As a result, the Fed is expected to remain cautious on rate cuts, putting pressure on emerging market currencies, including the rupiah.

The rupiah fell to around 18,070 per U.S. dollar during morning trading. It is expected to move within a range of 18,030 to 18,090 against the U.S. dollar today.

Meanwhile, gold prices moved higher despite rising oil prices and expectations of higher U.S. interest rates. Gold was trading at around $4,080 per troy ounce, while domestic gold prices reached approximately 2.38 million rupiah per gram.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)