The rand weakened on Friday, heading for a second consecutive week of losses as surging energy prices fuelled by conflict in the Middle East rattled global markets and heightened inflation concerns.

At 10.05am SAST, the rand traded at R16.94/US$, 0.9% weaker than Thursday’s close.

The currency has faced sustained pressure since the US-Israeli war on Iran started two weeks ago. It fell more than 3% last week and is poised to decline by around 2% this week. Rising oil prices pose a challenge for South Africa, a net energy importer.

Iran’s new supreme leader, Mojtaba Khamenei, said on Thursday that Tehran will keep the strategic Strait of Hormuz closed as leverage against the US and Israel, stoking concerns about global energy supply and risk assets.

Oil prices rose above $100/barrel, despite the US trying to ease supply concerns by issuing a 30-day licence for countries to buy Russian oil and petroleum products stranded at sea.

“Higher oil import costs could narrow trade surpluses and place renewed pressure on the current account if elevated prices persist,” ETM Analytics said in a research note.

On Thursday, South Africa recorded its first current account surplus in more than two years in the final quarter of 2025, helped by rising precious metal prices, but the data had little effect on the rand.

Underperforming

“While this war continues and the stress in the oil market builds, one should expect emerging-market currencies such as the rand and its Latin American peers to underperform developed-market currencies, especially the US dollar,” ETM Analytics said.

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The greenback was last up 0.4% against a basket of currencies. On the JSE, the Top-40 index fell1.2% in early trade. South Africa’s benchmark 2035 government bond also weakened, as the yield rose 11 basis points to 8.825%. — Sfundo Parakozov, (c) 2026 Reuters

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