Brent crude oil prices exceeded $90 a barrel on Tuesday following the resumption of tensions between the United States and Iran, which heightened inflation risks. Economists warn that the South African Reserve Bank may decide on a further interest rate hike.
The renewed conflict between the US and Iran returned global markets to a risk-off mode on Tuesday. Brent crude reached $90.37 a barrel in the afternoon as investors assessed the potential impact of prolonged supply disruptions through the Strait of Hormuz.
The sharp rise in energy prices intensified inflation concerns both globally and in South Africa. This drew increased attention to the Monetary Policy Committee (MPC) meeting of the South African Reserve Bank (SARB) scheduled for Thursday, where economists are divided on another rate hike.
Patrick Buthelezi, an economist at Sanlam Investments, noted that the resumption of hostile actions added another layer of uncertainty to an already fragile global economy. He stated that the renewed tension calls into question the June memorandum of understanding between the US and Iran, emphasizing that the situation remains unstable despite open diplomatic channels.
According to Buthelezi, the conflict has already begun to disrupt commercial shipping routes and reversed the decline in oil prices observed after previous diplomatic efforts. Although oil prices have risen significantly, they remain below the peak levels reached during the height of the conflict. However, he added that a protracted conflict will ultimately affect reserves that have served as a buffer against supply disruptions.
Buthelezi also pointed out that higher energy costs and escalating trade tensions threaten to slow global economic growth, despite the continued resilience of AI-driven investments. He noted that global growth is supported by strong demand for artificial intelligence and its continuous adoption, but this year it will be tested not only by higher energy prices but also by increased trade tariffs.
Although South Africa continues to benefit from economic reforms and relatively favorable trade conditions, Buthelezi forecasts a moderate pace of growth. He believes that progress in economic reforms and favorable trade conditions in South Africa partially offset the pressure caused by rising energy prices and US tariffs, but economic growth is likely to remain moderate.
He also suggested that central banks worldwide will remain cautious, monitoring inflation risks associated with rising oil prices. He believes that the US Federal Reserve will likely maintain a hawkish stance and may raise interest rates even further, as inflation has remained above the 2% target since 2021.
Locally, Buthelezi expects the Reserve Bank to continue tightening monetary policy. He posits that SARB is likely to raise interest rates again because inflation exceeds the target, and geopolitical events increase inflation risk. Recognizing that the MPC is likely to remain divided, he predicts a moderate and controlled cycle of rate hikes.
Despite some optimism related to ongoing mediation efforts, market sentiment remains cautious. Bianca Botess, Managing Director at Citadel Global, reported that investors are closely watching developments in both financial markets and geopolitics. She noted that the S&P 500 closed down 0.19%, while US futures showed gains on Tuesday morning.
Botess added that Asian markets reacted positively to the resumption of mediation efforts between the US and Iran. The MSCI Asia Pacific Index excluding Japan rose by 0.25% on Tuesday, as Asia felt relief from the mediation in the Middle East. She also mentioned that the South African rand continues to follow global investor sentiment, trading steadily at R16.44 against the US dollar, R18.81 against the euro, and R22.15 against the British pound.
Neil Wilson, Investment Strategist at Saxo UK, stated that energy markets remain highly sensitive to the expanding conflict. He noted that the Middle East conflict appears to have expanded and intensified over the weekend. Although oil prices briefly fell after mediation efforts, risks remain heavily skewed towards higher energy prices, inflation, and rates.
Wilson also emphasized that higher oil prices once again put pressure on the broader stock market, leading to a 0.2% drop in the S&P 500. Investors will be closely watching South African inflation data expected on Wednesday, as well as the Reserve Bank's announcement on Thursday, to determine whether slowing inflation or supporting the struggling economy is the priority.
A unified regulation for conducting laboratory tests has been adopted in Uzbekistan, which is applied during the construction, restoration, and repair of automobile roads. These changes are designed to increase the level of supervision over the quality of road works and prevent situations of conflict of interest during their acceptance.
The regulation was officially registered by the Ministry of Justice on July 20. Now, contracting firms are obliged to carry out continuous laboratory monitoring of quality. If a company does not have its own laboratory, it must enter into an agreement with an independent institution to perform these tasks.
Furthermore, the client has the right to engage certified laboratories to check compliance of the completed works with established standards. When selecting such laboratories, guidance must be followed according to the legislation on public procurement. Special attention is paid to the principle of openness: the client is strictly prohibited from using laboratories belonging to the contractor or those engaged by them, which serves as a measure against conflict of interest and guarantees an objective assessment.
In Uzbekistan, the introduction of plastic waste into road construction is also being discussed. The startup 'Eco-asphalt', created by eco-activist Mukadam Bekmuradova, focuses on recycling plastic that was previously considered non-recyclable, with the aim of improving the condition of the road network.
Nestle India, a major player in the FMCG sector, reported significant growth in its figures for the June quarter of the current fiscal year. The company recorded a year-on-year growth in consolidated net profit of 48.26 percent, reaching ₹958.68 crore.
According to regulatory filings, in the corresponding period last fiscal year, the company showed a consolidated net profit of ₹646.59 crore. In the first quarter of FY27, Nestle India's revenue from product sales increased by 25.4 percent, amounting to ₹6,363.27 crore, compared to ₹5,073.96 crore the previous year.
Manish Tiwari, Chairman and CEO, noted that the strong quarter was driven by a 25.4 percent sales increase, which was attributed to higher sales volumes. He emphasized that sustained consumer trust in the company's brands and focus on execution allowed these results to be achieved. Despite ongoing geopolitical difficulties, exports demonstrated a growth of 35.6 percent.
Nestle India's total revenue in the first quarter of FY27 reached ₹6,400.65 crore, which is 25.5 percent higher than the figure in the same period last year (₹5,100.33 crore). Meanwhile, the company's total expenses in the quarter under review increased by 20.71 percent, totaling ₹5,070.03 crore.
Nestle India's domestic sales grew by 25 percent, reaching ₹6,073.05 crore in the June quarter of FY27, compared to ₹4,860.01 crore in the previous fiscal year. The company's export revenue increased by 35.64 percent, amounting to ₹290.22 crore. Nestle India's earnings report indicated that all four product groups showed confident double-digit growth, supported by high double-digit growth across all channels.
According to Tiwari, during the quarter, Nestle India continued to accelerate operational cost savings and increase investments in its brands, with advertising expenses rising by more than 40 percent. The EBITDA margin stood at 24.2 percent. At the same time, Nestle India shares were trading on BSE in the morning at ₹1,497.80, which was 3.08 percent higher than the previous day's close.
Consumers can register to enter a draw for the Samsung Galaxy S25 before the official announcement of Samsung's next major product. The company announces that it will soon present its most comprehensive line of foldable devices, designed for more natural integration into daily life and expanded capabilities of foldable phones.
Samsung has spent seven generations developing the foldable device category, and now the company is ready to begin a new phase. The presentation will take place on July 22 at the Galaxy Unpacked event, where a range of products will be unveiled that insiders believe is the brand's 'secret power' and differs from previous releases.
A significant part of this new phase is driven by how people use their smartphones. The proportion of time users spend viewing content, scrolling through feeds, and reading is growing, unlike traditional actions such as typing or calling. Samsung has closely studied this shift, which influences the development of the future lineup, including the choice of forms and proportions, rather than simply increasing existing designs.
Another key component of the future is Galaxy AI. Samsung is developing this technology not as an isolated function, but as a comprehensive experience integrated into all aspects of phone operation: from predicting user needs to assisting in creating, organizing, and sharing information. The goal is for the technology to move from merely reacting to requests to possessing a sufficient understanding of user needs.
TM Roh, CEO and President of Samsung Electronics, emphasized that the next era of artificial intelligence will be defined not only by those who create the smartest technologies but also by those who best understand people. He noted that intelligence gains meaning when it can support people in a relevant, reliable, and seamlessly integrated way in daily life. The emphasis on trust is intentional: as devices become smarter and more personalized, users demand assurance that innovations work for them and maintain control.
Before the announcement, consumers in the region have the opportunity to register their interest in the next generations of Galaxy devices to participate in a draw. Galaxy Buds3 FE are drawn daily, Galaxy Watch8 weekly, and the grand prize is the Galaxy S25. To participate, one must fill out a registration form with basic details; bank details, payments, or any obligations are not required. Only one application per person is counted, and only registrations submitted via the official link are considered. The draw is available to residents of the United Arab Emirates, Bahrain, Kuwait, Oman, and Qatar.
