10-day warning for new driving laws, and trap for estates and complexes in South Africa

The market boost seen this week is in peril after Iran announced it would close the Strait of Hormuz in response to a breach of the MOU signed by the US and Tehran this week.

However, representatives are still meeting in Switzerland on Sunday to negotiate a permanent deal to end hostilities, which analysts are taking as a sign that tensions are easing.

Nevertheless, Iran’s announcement will likely make risk-averse shipowners with vessels trapped in the Strait of Hormuz for months more wary of exiting.

Earlier Saturday, western naval forces had said vessels using the corridor could cross at any time and with their satellite signals either on or off.

US Central Command said commercial ship traffic increased in the strait on Saturday, with 55 merchant ships transiting cargo and more than 17 million barrels of oil.

“Iran announced the closure of the Strait, but it is not clear yet if that is more than rhetoric,” said Daniel Shapiro, a former US ambassador to Israel and senior fellow at the Atlantic Council.

“Meanwhile, they are sending negotiators to Switzerland. That suggests they do not want to lose the benefits they are promised in this MOU.”

Iran was angered by Israel’s strikes on Lebanon just a day after the MOU was signed. The first point of the MOU was that hostilities would stop, including those with Lebanon.

For South Africa, the uncertainty clouds the rally for emerging market currencies, while an escalation of the war, or delay in making peace, risks inflationary pressure.

The Reserve Bank said it is already seeing early signs of second-round inflation effects as underlying price pressures build, emphasising the need to act.

When the central bank hiked interests rates in May for the first time in three years by 25 basis points to 7%, it didn’t have the latest inflation expectations, Lesetja Kganyago said in an interview with broadcaster CNBC Africa on Friday.

“We now have inflation expectations, and expectations have drifted away from target,” he said.

“And what we have seen is that all price setters are expecting inflation to be higher, and that is what the central bank has got to act on, reining in those expectations.”

Kganyago said the US-Iran deal left considerable uncertainty.

While the resumption of oil flows has eased some pressure, he cautioned that prices are unlikely to return to pre-conflict levels anytime soon.

Many analysts expect oil prices to remain elevated into next year, he added.

Parallel fine systems: The national AARTO rollout will be starting in 10 days’ time, and motorists have been warned that there will be two fining systems running concurrently as the new laws take effect in different jurisdictions. [MyBroadband]

Sectional title trap: Property experts say that sectional titles, estates and complexes with low levies should give owners and purchasers pause. While it could be a sign of a well-run scheme, it could also point to rates being kept artificially low to draw buyers, pushing the maintenance and other financial obligations down the road – trapping owners in a “false economy”. [Daily Investor]

Not so smart city: The new Lanseria Smart City, which has been punted by leadership since 2020, is standing bare. Most of the areas around the Lanseria International Airport, where there should be apartments, houses, and office blocks, are only open veld. There are no signs of the construction. [Newsday]

Battle brewing: National Assembly Speaker Thoko Didiza won’t oppose President Cyril Ramaphosa’s bid to interdict the Impeachment Committee. This stands in contrast to the decision by the Impeachment Committee, which declared that it would oppose the president’s bid. The matter will now move to a court battle. [ENCA]

Can’t afford new cars: A study conducted by the AA found that over 90% of motorists can’t afford new cars, with financial constraints forcing many to keep their current vehicles for more than a decade. This is supported by data from WeBuyCars, which shows that most vehicles sold on the platform are more than 10 years old. [TopAuto]