Rand Falls as Ongoing US-Iran Conflict Drives Up Oil Prices

The South African rand weakened by half a percent on Monday as oil prices surged due to the ongoing US-Iran standoff. The conflict has driven up Brent crude futures, which last traded above $107 a barrel.

South Africa imports most of its fuel, making it vulnerable to fluctuations in global oil prices since the Iran conflict began in late February. Oil prices have climbed more than 3% on Monday alone.

Andre Cilliers at TreasuryONE warned that volatility in the rand could be elevated this week as key economic data is released from the US, including the non-farm payrolls on Friday. The Johannesburg Stock Exchange's Top-40 index fell by 1.7% in early trade.