The Automobile Association (AA) of South Africa has raised concerns that oil prices will increase dramatically due to tensions between the US and Iran. This after millions of people have taken to the streets in Iran threatening severe action against the US for the killing of military leader Qasem Soleimani in a drone attack at the Baghdad Airport last week.
The AA revealed that oil prices had increased by 3 percent over the past few days alone. The bulk of South African oil comes from Saudi Arabia and economists are concerned that if there is a wider conflict, oil tankers may be targeted and supply reduced, which will ultimately cause fuel prices to increase in SA.
Brent crude oil has been trading at $69 dollars a barrel. – Zoë van Rooyen
