The South African (SA) Rand was steady in early trade on Wednesday as investors assessed renewed Middle East tensions, weighing higher gold ​prices against a firmer Dollar and rising oil prices.

The Rand traded at 16.32 against the Dollar, little changed from its previous close.

Iran’s Revolutionary Guards said they targeted United States (US) military sites in ​Bahrain and Kuwait after Washington launched a wave of military ​strikes on Iran in response to attacks on tankers in ⁠the Strait of Hormuz.

The US Dollar held around its highest level ​in a week in Asian trade, while oil prices rose more than 2% ​after the US military carried out airstrikes on Iran and reimposed sanctions on its crude sales, fuelling concerns that a fragile truce could be unravelling ​and disrupting Middle East oil supplies.

Gold, a key SA ​export, edged higher from a near one-week low as investors awaited the minutes ‌of ⁠the Federal Reserve’s June meeting, with renewed inflation concerns from fresh US, Iran strikes capping gains in the precious metal.

“While the Rand has been resilient in recent weeks, its near-term direction is likely ​to remain closely ​tied to ⁠developments in the Middle East and tonight’s Fed minutes,” said Andre Cilliers, Currency Strategist at TreasuryONE.

Like ​other risk-sensitive currencies, the Rand is often driven by ​shifts ⁠in global market sentiment, particularly since the start of the US, Iran conflict on February 28.

On the Johannesburg Stock Exchange, the Top-40 index was down ​about 1% in early trade.

SA’s ​benchmark 2035 government bond was weaker in early deals, with the yield up 10 ​basis points to 8.33%.

–Reuters–