Energy-linked stocks extended gains on Monday, with Thungela Resources and Sasol rising on the JSE as the collapse in US–Iran peace talks pushed oil prices higher and supported the energy sector.
Brent crude rose more than 7% to above $100 per barrel after peace talks between the US and Iran collapsed over the weekend, reigniting fears of supply disruptions through the Strait of Hormuz. Higher crude prices tend to directly support Sasol’s earnings outlook and lift sentiment across the energy complex.
Sasol rose about 5% in intraday trading, extending gains after rising 1.98% on Friday and 1.69% on Thursday. Thungela added about 8% on the day, building on a 2.49% rise on Friday after trading flat on Thursday. Both stocks had fallen more than 12% on Wednesday as earlier optimism around progress in US–Iran talks faded when cracks in negotiations began to emerge, before today’s collapse in discussions triggered renewed fears.
Over the weekend, high-stakes peace talks between the US and Iran in Islamabad, the capital of Pakistan, collapsed without an agreement. The 21-hour session, led by US vice-president JD Vance, ended with both sides blaming each other for the failure to resolve a six-week-old war that began in late February. The breakdown was driven by disputes over Iran’s nuclear programme. Washington demanded that Tehran, the capital of Iran and seat of its government, halt uranium enrichment, a process used in nuclear energy but which can also be used to develop nuclear weapons. Iran rejected the demand and accused the US of shifting its negotiating position under external pressure.
In a post on Truth Social on Sunday, President Donald Trump said the US will begin a naval blockade of the Strait of Hormuz following the collapse of talks with Iran. The move heightened fears of a broader supply shock through the Strait of Hormuz, a critical global oil shipping route.
“Markets are back on edge, with what were initially seen as constructive negotiations failing to result in an agreement,” said Citadel Global director Bianca Botes.
Botes said the rand, despite weakening against the dollar, was holding up relatively well given the heightened geopolitical risks.
“Markets are now looking for clarity on a potential ceasefire following the collapse in negotiations,” Botes said.
Thungela ended the session 9.49% firmer to R167.88, while Sasol was up 3.99% to R214.63.
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