South African motorists are bracing for a painful spike in fuel prices next month as global oil markets reel from rising geopolitical tensions and local economic pressures pile on.
The surge in petrol and diesel costs comes on the back of escalating military conflict between Israel and Iran , which has spooked global energy markets and reignited fears of supply disruptions in the oil-rich Middle East.
Tensions flared after Israel launched targeted strikes on Iran, allegedly aiming at nuclear and military infrastructure. Iran responded with threats of severe retaliation, with Supreme Leader Ayatollah Ali Khamenei confirming the deaths of several high-ranking officials. Although Iran's oil facilities haven't been hit, the threat of prolonged instability is enough to rattle global markets.
The Brent crude price reacted swiftly, soaring by 13 at its peak, its sharpest daily climb since Russia's 2022 invasion of Ukraine, before settling around 74.68 a barrel, as reported by The Daily Investor . The volatility wiped out earlier price losses for the year and could signal further turbulence ahead, especially if the crisis deepens.
Oil analysts are already drawing comparisons to past shocks, with JPMorgan Chase warning of a potential surge to 130 a barrel in the worst-case scenario. While OPEC's spare capacity, especially from Saudi Arabia, could provide some relief, the threat of Iran blocking the Strait of Hormuz, a critical passage for nearly a quarter of the world's oil, could push prices into uncharted territory.