JOHANNESBURG, March 23 (Xinhua) -- The South African Chamber of Commerce and Industry (SACCI) on Monday warned that the conflict in the Middle East has increased instability in global financial markets and could weigh on economic recovery prospects in South Africa and beyond.
Alan Mukoki, the chief executive officer of SACCI, said in a statement that disruptions to major supply routes and supply chains are likely to negatively affect the business cycle and lead to a clear deterioration in inflation, interest rates, economic growth, exchange rates and commodity prices.
"This does not bode well for any prospect of recovery that we would have anticipated as South Africa," said Muloki.
There are multilateral institutions that have been built over the years to resolve conflicts, he said, urging parties to the conflict to exercise restraint and have an immediate ceasefire.
Muloki also called on the South African government to take a diplomatic initiative and lobby international partners to have a ceasefire, warning that the destruction of civil infrastructure in energy and water has a devastating effect globally.
The United States and Israel launched massive attacks on Iran on Feb. 28, disrupting global shipping, sending oil prices soaring and negatively affecting the global economy. ■