Middle East Tensions Send Oil Prices Soaring Above $100 a Barrel

Oil prices surged to above $100 a barrel on Friday morning as tensions in the Middle East intensified, fueled by Houthi attacks on Saudi oil tankers. The sharp increase came just a day after the South African Reserve Bank (Sarb) decided to leave interest rates unchanged at 7%. Brent crude traded at $100.81 a barrel at 5:30am South African time.

The Houthi attacks raised concerns about global energy supplies, leading to a significant increase in oil prices. This development weighed heavily on investor sentiment across global markets, with the JSE All Share Index declining 1.2% to close at 108,335 points. Mining shares were among the biggest losers, with Northam Platinum dropping 5.2% and Valterra Platinum falling 4.5%.

The rand weakened against the US dollar following the Reserve Bank's announcement, trading at R16.8307 to the dollar by early Friday morning. The oil-driven inflation concerns extended across international markets, with Britain's FTSE 100 Index falling 0.7% and the S&P 500 declining 1.2%. Asian markets also followed suit, tracking overnight losses on Wall Street.