The South African rand fell to around 16.5 per USD, down from recent one-month highs, as risk-off sentiment returned amid uncertainty over US-Iran truce. Continuing strikes in the Middle East, with Israel intensifying military action in Lebanon, led Tehran to maintain the closure of the Strait of Hormuz and signal a potential withdrawal from negotiations with the United States. This caused a fresh spike in oil prices and revived concerns about energy-driven inflation, leading investors to reconsider potential rate hikes by major central banks. South African assets rallied on April 8 after the news of a two-day ceasefire, with the rand gaining over 2% and paring some of the steep losses since the start of the war.