As attacks between Israel and Iran persist, the global economy could face an adverse shock if tensions aren’t contained.

The potential for rupiah weakening is influenced by various factors such as the conflict between Iran and Israel, as well as the upcoming Federal Reserve meeting.

Iran remains in economic crisis due to international sanctions over its nuclear program, which have limited its oil exports. The Iranian rial remains weak and inflation is stubbornly high at around 40%. Any further disruption to oil exports would ripple globally.