The JSE and rand, usually subject to the effects of global risk-off trade during a crisis, showed resilience on Monday, with both firming despite the US attack on Iran at the weekend.
The JSE all share gained 0.44% to close at 95,128 points while the rand firmed 0.91% to R17.95/$ as geopolitical tension heightened after the US joined the battle between Israel and Iran.
US markets opened firmer, while those in Asia and Europe were mixed, with only small moves in either direction.
The US strike on Iranian nuclear facilities marked a potential escalation in the ongoing conflict. American military aircraft struck three Iranian nuclear sites using precision-guided bombs designed to destroy well-protected underground targets. The strike caused significant damage, particularly to the Fordow enrichment plant, an underground nuclear facility near Tehran, marking a big escalation in the conflict.
Reports say the US operation was carried out in close
co-ordination with Israel, which launched its own attacks on Iranian targets on June 13.
US President Donald Trump declared the military action “a spectacular success”, warning Iran that further strikes could follow if peace was not pursued.
Iran vowed to defend itself with “everlasting consequences”, with foreign minister Abbas Araghchi saying Tehran was weighing retaliation options and would consider diplomacy only after responding militarily.
Investors expected US involvement could trigger stock market sell-offs and a flight to safe-haven assets such as gold or the dollar.
“Markets showed some resilience following the US attack on Iran,” said Citadel Global director Bianca Botes. “The focus now shifts to Iran’s response, especially any threat to the Strait of Hormuz, a key route for global oil shipments.”
“Markets await further developments,” said Botes.
Analysts have cautioned, however, that any further escalation could cause volatility, complicate inflation outlooks and influence central bank policies worldwide.
Oil prices rose 3% in early trade on Monday on fears of supply disruptions through the Strait of Hormuz. By 7pm Brent crude had reversed gains and was 2.47% weaker at $75.30 a barrel.
Sasol, which gained more than 5% in intraday trade, also gave back all gains, ending 0.23% weaker at R95.01.
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