Surging oil prices due to the ongoing Middle East conflict are expected to elevate South African inflation, according to Morgan Stanley. Bloomberg posted on X, highlighting that this situation may lead policymakers to maintain interest rates at their current levels for an extended period. The financial institution's analysis suggests that the geopolitical tensions are exerting upward pressure on global oil prices, which in turn affects domestic inflation rates in South Africa. As a result, the country's central bank might opt to keep interest rates steady to manage inflationary pressures effectively. This approach aims to stabilize the economy amidst external uncertainties impacting the cost of energy and other commodities.