JOHANNESBURG - Oil prices are starting the week on a strong note.
Brent crude has climbed above $97 a barrel, nearing a three-month high.
US-Iran tensions have escalated after both sides targeted vessels linked to each other, raising fears of disruption to shipping through the Strait of Hormuz.
The renewed conflict has pushed oil prices about 10 percent higher over the past month as markets reassess global supply risks.
READ: Fuel hike hits motorists and petrol stations feel the knock-on effect
The rally is adding pressure to South Africa’s fuel and inflation outlook, with higher oil prices pointing to steeper fuel costs.
That could feed through into transport and other consumer prices in the months ahead.
It could also complicate the Reserve Bank’s path towards further interest rate cuts.