Indonesia's IHSG Slides as Oil Prices Surge Amid Middle East Tensions

On July 23‑24 2026 Indonesia’s benchmark index, the IHSG, swung sharply amid a spike in global oil prices triggered by heightened tensions in the Middle East. After Houthi‑linked attacks on two Saudi‑flagged tankers in the Red Sea, Brent crude rose above US$100 per barrel and WTI topped US$92, prompting concerns over inflation and tighter monetary policy.

The index opened on Friday, 24 July, at 6,266.98, down 0.77%, and fell throughout the session to close at 6,196.43 – a drop of 1.88% and the steepest decline of the week. Net foreign selling reached roughly Rp 759 billion, led by outsized sales of major banks and commodity‑linked stocks such as BMRI, BUMI and TPIA, each recording transaction values above Rp 700 billion. Profit‑taking, pressure from large‑cap stocks and a broader risk‑off mood amplified the sell‑off.

Earlier, on 23 July, the IHSG had opened higher at 6,346, with 266 stocks in the green and the LQ45 index up 0.09%. Analysts cited the oil rally and geopolitical risk as both a catalyst for short‑term gains and a source of volatility. Throughout the two‑day period market participants watched the Fed’s stance on rates and U.S. tariff announcements, which added to the cautious tone.

Overall, the Indonesian market’s movements reflected the combined effect of rising energy prices, external geopolitical shocks, and domestic foreign‑investor activity.