The South African rand weakened toward 16.6 per USD, its lowest level in nearly three weeks, as escalating Middle East tensions dampened risk appetite and drove investors toward the safety of the US dollar. Subsequently, declines in key precious metals, including gold and PGMs, further removed support for the currency. Meanwhile, oil prices jumped after Iran and Israel exchanged strikes for the first time since the April 8 ceasefire, reigniting concerns over inflation and potential policy tightening for major central banks. The South African Reserve Bank (SARB) raised the key repo rate by 25 bps to 7.0% on May 28, driven by mounting upside risks to price stability, most notably the conflict in Iran.