‘Disaster looming’: Mboweni says US-Iran tensions will impact SA economy

Finance Minister Tito Mboweni has expressed concern over increasing tensions between the United States (US) and Iran, following the death of top general Qasem Soleimani, the country’s hugely popular head of the Guards’ Quds Force, in a US strike.

The minister has pointed out the negative effect these global developments will likely have on the South African economy and called on the United Nations (UN) to do more to prevent any escalation in the conflict.

“Is the United Nations dealing adequately with the impending US-Iran global difficulty? I don’t think so. What do you think?” he tweeted.

READ MORE: Any US-Iran conflict could hit SA economy, experts warn

“Escalated global tensions have an impact on our economy. For example rising oil prices and other trade-related issues. Think!!” he said in a second tweet.

“‘Preventative Diplomacy’ is key in these situations. I hope that the UN’s efforts intensify and succeed. We cannot afford this oncoming conflict. Disaster looming,” he added in a third.

Is the United Nations dealing adequately with the impending US-Iran global difficulty? I don’t think so. What do you think.

— Tito Mboweni (@tito_mboweni) January 6, 2020

Escalated global tensions have an impact on our economy. For example rising oil prices and other trade related issues. Think!!

— Tito Mboweni (@tito_mboweni) January 6, 2020

“Preventative Diplomacy” is key in these situations. I hope that the UN’s efforts intensify and succeed. We cannot afford this oncoming conflict. Disaster looming.

— Tito Mboweni (@tito_mboweni) January 6, 2020

This morning, it was reported that the Trump administration has barred Iran’s top diplomat from entering the US this week to address the United Nations Security Council.

The council is set to discuss the assassination of Soleimani, and Foreign Minister Mohammad Javad Zarif had said he was hoping to give a speech condemning it.

The move is a violation of the terms of a 1947 headquarters agreement requiring Washington to permit foreign officials into the country to conduct UN business, three diplomatic sources told Foreign Policy.

Global stocks rebound as Iran fears ease

Equities rebounded while oil and safe-haven gold retreated Tuesday as fears of a Middle East conflict abated, but investors remained on alert for any escalation after the US assassination of a top Iranian general.

With few major developments in the crisis sparked by the killing of Qasem Soleimani last week, traders were able to turn their attention back to the global economic outlook and the US-China trade deal signing planned for January 15.

Wall Street provided a positive lead, with all three main indexes reversing early losses to end in the green Monday as traders welcomed strong service sector data from the US, Europe and Britain that provided hope that the worldwide growth slowdown was easing.

(Compiled by Daniel Friedman. Additional reporting, AFP)

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