EDITORIAL: Donald Trump’s move against Iran is a worry for SA
SA has an opportunity to reject Trump’s decision but still stay within the parameters of international consensus by partnering with Europe and other nations
How should SA respond to US President Donald Trump’s decision to exit the nuclear deal with Iran? A measured degree of irritation would be appropriate. The problem for SA is not just the international ramifications but the fact that the US plans to reimpose sanctions on Iran — and that affects SA intimately because SA has resumed oil imports from Iran, mostly because the quality of Iranian oil suits SA’s refineries. In addition, MTN is a major player in the Iranian cellphone market. A calculation by Bloomberg Economics suggests SA is the country that will suffer most from Trump’s decision to exit the Iran nuclear accord. The macroeconomic consequences are worrying, too, and not just for SA. The government has plugged several holes in its revenue through increasing the excise tax on petrol, mainly based on the belief that oil prices are unlikely to increase dramatically. In fact, they have. Brent crude hit $78 a barrel last week after the decision. A year ago, few were prepared to be...
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