South Africa on tenterhooks over Iran

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Expert says that in event of war with israel, energy costs are likely to rise, affecting inflation and rates

A handout image grab made available by the Iranian state TV, the Islamic Republic of Iran Broadcasting , shows what the TV said was a live picture of the city of Isfahan early on April 19, 2024, following reports of explosions heard in the province in central Iran.

This is after an earlier attack by Israel against Iran’s diplomatic premises in Syria. Commenting on the Middle East situation, Prof Raymond Parsons, of North-West University Business School, cautioned that further escalation would pose “serious risks to the world economic outlook”. “This means implementing domestic policies and measures that visibly build economic resilience, create the necessary financial buffers and keep domestic policy uncertainty to a minimum,” said Parsons.

“Such isolation would come at a heavy price, as neither Iran nor the other Brics members are in a position, or willing, to compensate and support South Africa in any meaningful way.“Globally, the Iranian missile attack on Israel has damaged the moderate international sympathy that Iran had come to enjoy over the past years.

“Governments also accept the firm rule of international law that the diplomatic immunity of consulates and embassies does not prevent carrying out antiterrorism measures,” added Thomashausen.He ruled out the likelihood of the conflict escalating “beyond the current war between Hamas and Israel”.

 

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