SA set to suffer the most from Trump’s Iran sanctions, says Bloomberg
SA is the country that will suffer most from US President Donald Trump’s decision to exit the Iran nuclear accord, according to Bloomberg Economics.
Bloomberg Economics ranked SA as the most vulnerable country to Iran sanctions, followed by Thailand and Turkey. Reasons for SA’s vulnerability included its dependence on Iranian oil.
SA is also exposed to Iran via MTN which operates a joint venture, MTN Irancell.
MTN’s share price fell as much as 4% to R120 on Wednesday morning, but recovered some of this to be 2% lower at R122l.40 at 11.45am.
Of 15 emerging markets, Bloomberg rated Russia as the country with the least to lose from fresh sanctions on Iran because its oil production accounts for 10% of its GDP, in contrast with SA where oil consumption contributes a negative 3% to GDP.
Bloomberg, Staff Writer