The escalation of the Iran–Israel conflict during the 2023–2025 period has affected global stability and Indonesia’s national interests, particularly in the areas of energy, economy, and security. This issue is significant because Indonesia must balance Islamic values as a moral foundation with its free and active foreign policy principle in responding to the geopolitical dynamics of the Middle East. This study aims to analyze the influence of Islamic values, namely al-'adālah (justice), amar ma'rūf nahi munkar (enjoining good and forbidding evil), and al-ukhuwwah al-islāmiyyah (Islamic brotherhood), on Indonesia’s foreign policy toward the Iran–Israel conflict, while examining the continuity of the free and active foreign policy under the administrations of Joko Widodo (2023–2024) and Prabowo Subianto (2025). This study employs a qualitative approach using Critical Discourse Analysis (CDA) of official documents from the Ministry of Foreign Affairs, speeches by the President and the Minister of Foreign Affairs, United Nations resolutions, statements of the Organisation of Islamic Cooperation (OIC), and relevant academic literature. The findings indicate that Islamic values serve as both a moral foundation and a source of soft power in Indonesia’s diplomacy. While the Joko Widodo administration emphasized a normative and humanitarian approach, the Prabowo Subianto administration adopted a more pragmatic orientation without abandoning the free and active foreign policy principle. These findings demonstrate that Islamic values continue to provide an ethical framework that strengthens the consistency and adaptability of Indonesia’s foreign policy in addressing international conflicts.