The South African rand has traded in a narrow range of 16.0–16.5 per US dollar since early May, as developments in the Middle East conflict continued to drive swings in risk sentiment. Renewed tensions surrounding the Strait of Hormuz have added uncertainty to global energy markets after Iran announced the closure of the strategic shipping route, while US officials maintained that maritime traffic remained active following recent military strikes. This reignited inflation concerns and prospects of potential rate hikes by major central banks.