Iran War Oil Shock Threatens to Disrupt Africa’s Easing Cycle

A widening Middle-East conflict could prompt African nations to delay further interest rate cuts, as the threat of higher oil prices revives concerns about inflation and risks weakening local currencies.

Nine African countries including Nigeria, Kenya, Egypt and the Democratic Republic of Congo last month cut interest rates, citing lower inflation, high foreign demand for their local-currency denominated bonds and current account surpluses boosted by stronger commodity prices.