The chamber cautioned that the knock-on effects of the conflict could be severe, particularly for emerging markets. F
Image: AFP
The South African Chamber of Commerce and Industry (Sacci) has raised alarm over escalating tensions in the Middle East, warning that the conflict is already destabilising global financial markets and could significantly derail economic recovery prospects, including those of South Africa.
This comes as Brent crude oil traded above $113 per barrel on Monday after climbing to as high as $115 earlier in the session as investors assessed US President Donald Trump’s ultimatum urging Iran to reopen the Strait of Hormuz.
In a statement on Monday, Sacci said the unfolding developments have disrupted key supply routes and global supply chains, with far-reaching consequences for the world economy.
These disruptions are expected to negatively affect the business cycle, driving deterioration across critical economic indicators such as inflation, interest rates, economic growth, exchange rates, and commodity prices.
As geopolitical tensions continue to rise, Sacci’s message reflects growing concern within the business community that prolonged conflict could deepen economic fragility and prolong uncertainty in an already volatile global environment.
The chamber cautioned that the knock-on effects of the conflict could be severe, particularly for emerging markets. For South Africa, which is already facing structural economic challenges and sluggish growth, the external shock poses a serious threat to any anticipated recovery.
“This does not bode well for any prospect of recovery that we would have anticipated as South Africa,” Sacci said, underscoring the country’s vulnerability to global volatility.
Sacci called on all parties involved in the conflict to exercise restraint and prioritise diplomatic solutions. It emphasised that war is not a sustainable means of resolving disputes and warned that continued hostilities would only deepen global uncertainty.
“The adventure of wars cannot resolve disputes,” the chamber noted, adding that it is deeply concerning that multilateral institutions, built over decades to uphold international order, appear increasingly unable to enforce rules and maintain stability.
The organisation further warned that failure to resolve the conflict could have long-term consequences for the global economy, undermining confidence and delaying recovery across regions.
In response, Sacci has urged the South African government to take a more assertive diplomatic role on the global stage. It called on authorities to actively engage international partners and lobby for an immediate ceasefire and an end to hostilities.
“The destruction of civil infrastructure in energy and water has a devastating effect globally,” Sacci said, highlighting the broader humanitarian and economic consequences of the conflict.
The chamber stressed the urgency of coordinated global action, calling for renewed efforts to find sustainable and peaceful solutions. It maintained that ending the war through dialogue and cooperation is essential to restoring stability and safeguarding future economic growth.
BUSINESS REPORT