Global markets recovered after renewed United States and Iran tensions rattled investors, but experts warned South Africa remains exposed to higher oil prices, inflation and rand weakness if the conflict escalates.
Global financial markets regained some composure on Thursday after the sharp sell off triggered by renewed military tensions between the United States and Iran, with investors turning their attention to strong corporate earnings and slightly easing oil prices.
Although concerns remain over the security of shipping through the Strait of Hormuz, markets appeared less convinced that the latest military action would develop into a prolonged escalation.
Neil Wilson, Saxo UK Investor Strategist, said investors had become more measured in their assessment of the geopolitical risks.
"The shooting continues but oil prices have eased and stocks have made a modest advance. Although the US struck Iran for a second day the market is yet to see this as a major reescalation," Wilson said.
