Market News

JOHANNESBURG, April 23 (Reuters) – The South African rand slipped in early trade on Thursday as a stand-off between Iran and the U.S. in the Middle East war and lack of progress in peace talks lifted oil prices back above $100 per barrel, weighing on investor sentiment.

At 0650 GMT the rand traded at 16.53 against the dollar, about 0.4% weaker than its previous close.

The dollar was broadly flat against a basket of currencies, while oil prices rose more than $1.

South Africa is a net importer of energy, leaving it highly exposed to swings in global prices.

Iran seized two ships in the Strait of Hormuz on Wednesday, tightening its grip on the strategic waterway after U.S. President Donald Trump extended a ceasefire with no sign of peace talks restarting. Trump maintained the U.S. Navy blockade of Iran’s trade by sea, and Iran’s parliament speaker and top negotiator Mohammad Baqer Qalibaf said a full ceasefire only made sense if it was lifted.

South Africa’s benchmark 2035 government bond was weaker in early deals, with the yield up 6 basis points to 8.615%.