Sasol shares jumped 15% in South African trading as the collapse of US-Iran ceasefire talks reignited fears of a supply disruption in the Middle East.
The sharp rally in the energy sector comes as Brent crude topped $85 a barrel for the first time in more than a month, marking a dramatic reversal from the price declines seen earlier in July.
Sasol, along with other regional energy firms, has benefited from the spike in crude prices, which had previously slid below $71 as US-Iran talks advanced.
The market move reflects a rapid repricing of geopolitical risk after the United States indicated that the previous ceasefire agreement has effectively collapsed.
This development has triggered renewed selling pressure in global equity markets while boosting energy and shipping stocks.
The surge in oil prices underscores the market's sensitivity to potential disruptions in Strait of Hormuz flows, which had previously eased as traders anticipated a diplomatic resolution.
For South African companies with significant exposure to oil and coal, the escalation has provided a short-term tailwind.
Sasol, along with other regional energy firms, has benefited from the spike in crude prices, which had previously slid below $71 as US-Iran talks advanced.
The current volatility highlights the ongoing uncertainty surrounding Middle East stability and its direct impact on global energy markets.
Investors are now closely watching the South African Reserve Bank's upcoming interest rate decision, which will be made against the backdrop of rising oil prices and renewed geopolitical tensions.