Concerns that US-Iran tensions could see SA, EMs suffer consequences

The US has been pouring troops into the Middle East, while millions of Iranians have taken to the streets to protest against the killing of their top military commander.

Protesters burn US flags as they shout slogans against the United States during a demonstration following a US airstrike that killed top Iranian commander Qasem Soleimani in Iraq, in Islamabad on 3 January 2020. Picture: AFP

JOHANNESBURG - With tensions building between the US and Iran, there are concerns that emerging markets, including South Africa, may suffer some of the consequences of a wider conflict.

The oil price has risen by more than 3% over the past week, which could soon affect fuel prices.

The US has been pouring troops into the Middle East, while millions of Iranians have taken to the streets to protest against the killing of their top military commander.

The AA has presented a positive picture that there will be minor changes to fuel prices next month but there are warnings that this could change.

Chief economist at Pan African Investment and Research Services Iraj Abedian.

"We're really seeing the results in literally the cost of petrol, diesel, paraffin, the cost of transportation and as a result the effect that it has on all other services."

South Africa has already been hit by high fuel prices along with rising municipal rates and more expensive electricity.

On the other hand, though, the conflict has seen investors place their funds in safe havens.

The gold price has shot up, much to the relief of mining companies.