How Trump’s war affects your trolley
We are a month into a messy war that is thousands of kilometres from South Africa, but its effects are quite close to home.
On 28 February, the US and Israel launched strikes against Iran, killing Supreme Leader Ayatollah Ali Khamenei. Iran hit back, targeting US military facilities in the region, Israel, and energy and civilian infrastructure in the Gulf states. It also closed the Strait of Hormuz, a vital waterway that carries a fifth of global oil supplies.
The move pushed up the price of oil, which looks set to escalate in the face of no clear plan for how the war will play out from either the US or Israel.
Trump’s address on Wednesday provided no comfort. After he threatened more strikes on Iran, the price of oil surged even more.
In this week’s Friday Briefing, we examine how Donald Trump’s war is affecting the cost of your trolley.
News24’s business journalist, Lisa Steyn, explains how higher global oil prices as well as a weaker rand have hit South Africa twice, which was just emerging the impact of Covid-19 on its economy. You can read her full analysis here.
News24’s in-depth writer, Muhammad Hussain, takes a closer look at what is going to cost you more as the war continues, with no end in sight. His breakdown of various products and services is available here.
Hussain also spoke to the Competition Commission’s chief economist, James Hodge, who revealed that it’s not just rising oil prices affecting consumers, but also electricity and water costs. Their conversation can be found here.
From an agricultural perspective, Agbiz’s Theo Boshoff and AgriSA’s Jolanda Andrag argue that while South Africa cannot control global conflict, it can control how exposed its food system is when conflicts occur. Read their insights here.
Finally, Dr Hoitsimolimo Mutlokwa explains why it is vitally important for consumer protection bodies to step up in the face of rising costs. You can read his views here.
