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View all search resultsThe prolonged United States-Israeli war on Iran, coupled with the effective closure of the Strait of Hormuz, is beginning to ripple through global supply chains, particularly in oil and gas. The conflict is fueling cost-push inflation through rising prices of oil-derived products, especially plastics. Yet in Indonesia, the policy response remains limited, even as the economic impact becomes increasingly visible.
Iran warned it could target United States "hideouts" in the United Arab Emirates as a major UAE energy hub suffered disruption after a drone attack on Saturday, and US President Donald Trump said "many countries" would send warships to the region.
Jakarta is scrambling to bring home thousands of umrah (minor haj) pilgrims stranded in Saudi Arabia after sweeping airspace closures linked to the United States–Israel war against Iran disrupted travel across the Middle East, though limited flights are still operating.
Analysts question whether Trump, who has ruled out deploying US troops on the ground, has a strategy that could unseat Iran’s longtime cleric-dominated government, which has proved resilient in the face of crippling sanctions and periodic mass protests.
Fighting was still raging at seven or eight locations inside Israel captured by the fighters, who killed 700 Israelis and seized dozens of hostages in an assault that shattered Israel's reputation of invincibility.
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