- Oil prices corrected below USD 100/bl after President Trump hinted at a ceasefire, although prices may remain above pre-war levels given elevated volatility and risk premiums.
- Oil prices trading in the USD 70–90/bl range may reflect a more optimal condition for the global oil market. However, these elevated prices may still pose a threat to Indonesia’s fiscal space.
- The government may look to mobilise off-the-budget instruments to share part of its fiscal burden, as adjusting spending commitments would negatively affect domestic demand.
