The South African rand weakened in early trading on Tuesday as rising tensions in the Middle East dampened risk appetite and supported the dollar.

At 06:53 GMT, the rand traded at 16.2675 against the dollar, about 0.3% weaker than its previous close.

The US dollar was stronger against a basket of currencies, with oil prices rising for a third session.

South Africa imports the majority of its fuel, making it sensitive to the surge in global energy costs since the war started in late February.

Global rates affected

Iran said it would shift to a "fully offensive" military posture because efforts to negotiate a permanent end to the war have stalled, a senior Iranian official told Reuters as Washington ruled out extending their June ceasefire agreement.

The more than five-month-long conflict has upended the global rates outlook and stoked inflationary concerns through most of the year.

On the domestic front, investors will focus on South Africa's July inflation data due on Wednesday, with economists expecting annual inflation to ease to 4.5% from 5.0% in June.

South Africa's benchmark 2035 government bond weakened in early deals, as the yield rose 7 basis points to 8.545%.