Oil prices surged on Monday following US airstrikes on Irans nuclear sites , raising global fears of a wider conflict that could disrupt energy markets.
Iran, the worlds ninth-largest oil producer, has threatened retaliation - including possibly blocking the vital Strait of Hormuz, through which about 20 of the worlds oil passes, according to AFP .
Brent crude rose over 4 in early trade before settling 2.1 higher at 75.43 per barrel, while WTI hit 78.64 - the highest levels since January. Analysts warned that any sustained escalation could drive oil prices up by 10 per barrel or more, increasing global transport and energy costs.
Impact on South Africa:For South Africa, which imports most of its fuel, rising oil prices will likely translate to higher petrol and diesel costs at the pump. This comes at a time when local consumers are already grappling with inflationary pressures, a weak rand and sluggish economic growth.
Higher fuel costs will affect transport, food prices and the broader cost of living - placing additional strain on South African households and businesses.