Oil prices retreated on Monday but South Africans must still prepare for a shock at the pumps in April.
Image: AFP
Oil prices plunged, and European stocks rebounded on Monday after US President Donald Trump ordered a halt to strikes on Iranian energy infrastructure after claiming "very good" talks with Tehran.
Trump's comments sparked a sharp reversal on markets, with crude prices sinking as much as 14 percent after rising around one percent earlier in the day.
At around 2pm (South African time), international benchmark Brent North Sea crude was trading at around $100 per barrel, down 8.7% from the morning's peak of $109.50, after briefly sinking to $93 when the news of Trump's ceasefire broke.
However, oil will need to sink significantly below the $100 mark in order to stave off the impending fuel price crisis. Should a positive resolution be reached, and oil prices sink further as a result, it will largely only be reflected in May's fuel price adjustment.
The latest data from the Central Energy Fund is pointing to petrol price increases of up to R5.41 in April, with diesel rising by up to R9.06.
European stocks turned higher following earlier declines of about 2.5 percent that had been triggered by Trump and Iranian leaders trading threats over the key Strait of Hormuz.
Frankfurt's stock market went on to rebound 1.5 percent nearing midday, while Paris rose one percent.
London's FTSE 100 index, weighed by sharp losses for energy heavyweights BP and Shell, was flat.
The United States and Iran "have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East", Trump wrote, in all capitals, on his Truth Social platform.
IOL & AFP