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While the minutiae of the US-Iran deal must still be finalised over the next 60 days, the signing of a memorandum of understanding between the two warring parties saw markets grab the opportunity and run with it on Monday.The JSE’s precious metals and mining index gained the most since mid-March 2020, when the world rushed to the safe haven of precious metals while the Covid-19 pandemic wrought havoc.There was more good news for those that traded during Tuesday’s public holiday, with the rand firming for a second consecutive day. At 6pm it had strengthened to R16.18/$, just 24c weaker than it was the day before the US and Israel launched their attacks on Iran in late February.“The rand is likely to see some further strength, and other financial market indicators will improve for South Africa as well,” said Investec chief economist Annabel Bishop.Harmony Gold stole the show on Monday, leading gains on the local bourse with the biggest climb in nearly six months — when the gold price was racing up on fears of what an unpredictable US President Donald Trump might do next to roil markets — finishing the day 11.21% higher at R286.Rand gainsTreasuryONE currency strategist Andre Cilliers said: “The fall-off in safe-haven demand for the dollar is helping commodity prices recover, with all base metals trading firmer.”Platinum stocks soared with the price of the metal, as an end to the war is likely to end the disruption to the industry over the past three months.“While the negotiations around Iran’s nuclear programme, sanctions on the country, and the release of frozen Iranian assets still need to be finalised, markets responded positively,” Cilliers said.Impala Platinum was the second-best performer on the JSE on Monday, adding 11% to R219 — its single biggest one-day gain since late January.Oil prices fell for a fourth consecutive day on Tuesday as the supply bottleneck through the Strait of Hormuz is set to ease as the waterway running between Iran and Oman is once again opened to ships transporting oil and other vital commodities such as fertiliser.South Africa is particularly reliant on fertiliser ingredients from the Middle East, with about a third of the country’s needs imported via the region.Markets recalibrating “Markets are recalibrating after the announcement of the peace deal, with the fuel price cuts originally signalled for July in South Africa now likely to be substantially larger,” said Bishop.Still, Bishop cautioned against expecting prices to return to levels last seen before the war began. “For Brent crude, the futures currently see the oil price at $78.90/bbl by January, versus the $65 seen before the war began,” she said.The JSE resources index also enjoyed a good Monday, adding 6.4%, the most since February 24, just days before the war broke out. No fewer than the top 10 performers on the JSE on Monday were mining stocks.Among the major diversified miners, BHP did best, adding 1.97% to R743.50.Gold ended 0.82% higher at $4,344/oz on Tuesday, taking the two-day advance to almost 3%.Platinum was the star performer among precious metals, though, having added about 5.5% over the two days. It closed at $1,816/oz on Monday, but it is still well below its prewar level of $2,369.45/oz.
