South Africans may face further fuel price hikes and rising interest rates if Brent crude remains above $100 a barrel amid ongoing tensions in the Middle East.
Ongoing tensions in the Middle East and continued disruption around the Strait of Hormuz are keeping global oil prices elevated, with economists warning that South Africans could soon feel the effects through higher fuel costs, rising inflation, and additional interest rate hikes.
According to Annabel Bishop, commercial cargo traffic moving through the Strait of Hormuz has dropped dramatically in recent weeks as uncertainty surrounding the conflict between Iran and the United States continues.
“Commercial cargo vessels crossing through the Strait of Hormuz have declined from over one hundred and twenty a day to around five a day, with some days seeing zero and others closer to ten,” Bishop said.
The Strait of Hormuz is one of the world’s most strategically important shipping routes for global oil and energy supplies. The disruption has contributed to Brent crude oil prices remaining above US$100 a barrel since late April.
