Economists are optimistic that fuel prices will come down now that the US and Iran signed a peace deal to open the Strait of Hormuz.
A peace agreement between the United States and Iran could offer a welcome boost to South Africa's economy, with economists predicting lower fuel prices, easing inflation and reduced pressure on interest rates if stability returns to the Middle East.
The agreement follows months of conflict that rattled global energy markets and pushed oil prices sharply higher amid fears of supply disruptions from one of the world's most important oil-producing regions.
Although economists caution that it remains early days and that the agreement still faces several hurdles, the immediate reaction from global markets has been positive, with oil prices retreating from recent highs.
Professor Raymond Parsons of the North-West University Business School said the agreement comes as a significant relief for the world economy.
