The South African rand weakened toward 16.7 per USD, the lowest level since early May, pressured by a stronger dollar and falling prices of key precious metals, amid Middle East conflict risks. Oil prices rose, the Strait of Hormuz remains effectively disrupted, and President Trump has intensified rhetoric on Iran as hopes for a swift resolution fade. Domestically, the South African Reserve Bank (SARB) has made clear it will not deviate from its 3% inflation target, despite a fresh global oil shock that risks pushing prices higher. The central bank is set to face a tough call at its end-May meeting as the inflation outlook is becoming more uncertain. Inflation ticked up to 3.1% in March from 3% in February, though April’s reading is expected to reflect higher fuel prices. The SARB is likely to skip a rate hike in May, while monitoring potential second-round effects. On the political front, President Cyril Ramaphosa faces renewed scrutiny through a parliamentary impeachment process.