The rand edged lower on Tuesday, slipping 0.20% to R17.93/$ by 17h50 SAST, as investors weighed geopolitical risks from the Israel-Iran conflict and anticipated key local economic data releases. Despite heightened global risk aversion, the rand's decline was tempered by a subdued US dollar. Meanwhile, the JSE retreated by 0.70%, closing at 94 657.

Globally, market sentiment was bruised by escalating Middle East tensions. US stocks fell, with the S&P 500 down 0.80%, the Nasdaq losing 0.90%, and the Dow sliding 300 points. Contributing to the downturn were weak US retail sales and aggressive rhetoric from President Donald Trump, including threats toward Iran’s leadership and speculation of deeper US involvement in the conflict.

European equities also suffered sharp losses, with the STOXX 50 and STOXX 600 falling 0.90% and 0.80%, respectively, as geopolitical fears intensified. In Asia, Chinese markets were flat to slightly lower amid trade concerns, while Japan's Nikkei gained 0.59% after the Bank of Japan maintained its policy stance.

Oil prices surged, with WTI jumping over 2.50% to $73.60 and Brent nearing $75 per barrel, as fears of disrupted supply chains grew in response to mounting military actions and US threats targeting Tehran.