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Barrels of oil.
Oil prices have plummeted by over 10% following news that the Strait of Hormuz has been reopened to commercial traffic by Iran.
Iran’s Foreign Minister, Abbas Araghchi, posted on the platform X that the Strait is now completely open for all commercial vessels.
Brent Crude oil prices, which had been trading at significant premiums due to the conflict, fell sharply to 89 dollars per barrel.
Locally, the rand gained more than 1% in late trade and was trading at R16, 21 to the US dollar.
The lower oil costs and a stronger currency could provide a last-minute lifeline for South African motorists.
Earlier this week, data suggested a steep petrol price hike of roughly R2.00 per liter was imminent for the end of the month.
However, if the current exchange rate and oil prices hold, that hike could be significantly reduced or even reversed.
