Business leaders in many parts of the world are analysing the impact and counting the cost of the US-Israeli strikes on Iran, along with the Iranian retaliation.
Oil, gold, airlines and shipping have all been affected.
Gold has jumped over $130 – now $5,361.
Multiple airlines have cancelled flights that would have gone through Middle Eastern airspace. Most heavily hit are the big Gulf carriers – Emirates, Qatar Airways and Etihad – with airports closed in Dubai, Doha and Abu Dhabi.
Tens of thousands of travellers have been left stranded as a result.
With the Strait of Hormuz and the Suez Canal effectively closed, a large amount of maritime traffic is re-routing around the Cape coast. Brent Crude oil is up more than 6% at $77. Analysts are suggesting it could go as high as $100 per barrel.
Sasol on Friday evening on the JSE up 16% – and that was before the attack.
S.A. SEEKS U.S. TRADE DEAL
Meanwhile, President Ramaphosa’s special trade envoy, Alastair Ruiters, is due to visit Washington this week in an attempt to secure some kind of trade deal.
This, in the wake of the US Supreme Court decision to strike down Donald Trump’s first round of sanctions.
Ruiters is favourite to be appointed South Africa’s new ambassador to the US, but we know the Trump administration has put major stumbling blocks in road ahead of any deal.
TWO KEY RESIGNATIONS
Two notable resignations are reported this morning. Bloomberg says the head of the budget office, Edgar Sishi, has quit. He handed in his notice on Budget Day – he’s set to join the International Monetary Fund.
And the Public Investment Corporation’s Chief Investment Officer, Kabelo Rikhotso, has also quit.
He’s been on precautionary suspension for the last five months after misconduct allegations in a whistleblower’s report.
MARKETS SKID AFTER U.S. ATTACK ON IRAN
As we went into the weekend, before the US/Israeli attacks, the JSE closed at an all-time high with the All Share up 1.5% at 128,455 – the Top 40 up 1.6% at 120,296.
Valterra Platinum up 4.4% – AngloGold Ashanti up 3.6% – Impala Platinum up 5%
London’s FTSE was up 0.6% – and in New York, the Dow and the Nasdaq were both down around 1% – the S&P 500 down 0.4%.
Tokyo this morning after the US-Iran clash – down 1.4% – Hong Kong down 1.7% – Sydney down 0.3%. The futures market has the Dow set to open more than 500 points down.
No real change in the US dollar – still $1.18 to the euro – but the rand has edged weaker – R16.04 to the dollar, R18.91 to the euro and R21.57 to sterling.
Finally, platinum – unchanged at $2,376 and Bitcoin – now just over $66,900.
