FUEL PRICE PAIN AS MISSILES FLY

Consequences could be far-reaching for SA

- SIPHELELE DLUDLA

WHILE missiles fly thousands of kilometres away, the effects of a deepening conflict between Israel and Iran are beginning to reach South African shores - not through politics or security, but through rising prices at the pump and pressure on already-stretched household budgets.

A surge in global oil prices, triggered by military strikes on strategic energy assets and growing fears of supply disruption, is stoking inflation concerns that could ripple through the economy and stall any hopes of interest rate relief.

The bombardment of Iranian military targets by Isreal erupted over a week ago as airstrikes targeted Iranian military infrastructure, including pivotal oil and gas facilities such as the South Pars gas field and the Shahr Rey oil refinery, provoking retaliatory missile attacks by Iran on major Israeli cities.

This has raised alarm bells among market watchers, particularly given Iran's critical role as the third-largest oil producer within the Organisation of the Petroleum Exporting Countries (OPEC+), contributing around four million barrels of crude oil per day and controlling access to the vital Strait of Hormuz.

Despite Iran maintaining crude exports at 2.2 million barrels per day amid the conflict, rising shipping costs and delays due to the potential blockade of this strategic waterway could influence inflation across the globe.