By Mapaballo Borotho
- Escalating tensions in the Middle East are expected to negatively impact the global economy, affecting inflation, growth, and commodity prices.
- The South African Chamber of Commerce and Industry has warned that damage to energy infrastructure could worsen the global energy crisis and is calling for an immediate ceasefire.
- Meanwhile, South Africans are bracing for sharp fuel price increases in April, with petrol expected to rise by up to R4 per litre.
Escalating tensions in the Middle East are set to have a significant impact on the global economy, with clear negative effects on the business cycle, including inflation, interest rates, economic growth, exchange rates, and commodity prices.
This is according to the South African Chamber of Commerce and Industry (SACCI).
The organisation raised concerns on Monday, 23 March 2026, as Israel launched a fresh wave of strikes on Iran, which has threatened retaliation against critical infrastructure across the region.
The conflict has plunged the world into one of its worst energy crises in decades.
At least 40 energy assets across the oil- and gas-exporting region have reportedly been severely damaged as the war, ignited by Israel-US attacks on Iran, enters its fourth week.
SACCI has called on warring parties to exercise restraint and sound judgment, urging an immediate ceasefire.
“The failure to resolve this conflict does not bode well for the future of the global economy. We call on the South African government to aggressively take diplomatic action with global partners to push for a ceasefire and an end to hostilities,” the organisation said in a statement.
SACCI CEO Alan Mukoki warned that the destruction of critical infrastructure, particularly in energy and water, has devastating global consequences.
“We have to make every effort to stop and end the war by finding sustainable solutions for peace,” he added.
Impact on South African petrol prices
South Africans will have to dig deeper into their pockets as they face a severe cost-of-living blow.
Petrol prices could rise sharply in April, with increases of up to R4 a litre, while diesel hikes are expected to drive up food and transport costs.
This would mark one of the steepest fuel price increases in recent years, surpassing the previous major spike in July 2022, when prices rose by R2.57 per litre following Russia’s invasion of Ukraine.
Projected fuel price increases (end of week 3):
• Petrol 93: increase of R4.68 per litre
• Petrol 95: increase of R5.20 per litre
• Diesel 0.05% (wholesale): increase of R8.52 per litre
• Diesel 0.005% (wholesale): increase of R8.64 per litre
• Illuminating paraffin: increase of R10.58 per litre
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