South African assets hit by Middle East conflict impact

African business coverage focuses on how the Middle East war and global risk aversion have hurt South African markets. Reports link the worst monthly performance in years for local assets to foreign outflows, a stronger dollar, and delayed expectations for interest rate cuts. They warn that higher oil prices and a weaker rand could feed inflation and keep borrowing costs high for households and companies.

• •South African stocks and bonds have logged their weakest month in several years as global investors retreat from emerging markets.
• •The stronger US dollar has put pressure on the rand, raising the local cost of imported fuel.
• •Higher expected inflation has reduced chances of near‑term interest rate cuts by the South African Reserve Bank.
• •Local analysts warn that prolonged conflict in the Middle East will keep energy costs elevated for South African consumers.
• •Business coverage links the slump in South African assets to both global risk aversion and domestic rate expectations.