The South African rand firmed in early trade on Tuesday as global markets assessed mixed developments in the US-Iran conflict, with oil prices easing on reports of mediation efforts.

At 0731 GMT the rand traded at 16.4449 against the dollar, about 0.5% up from its previous close.

Brent crude futures fell 96 cents, or 1.1%, to $88.26 per barrel on Tuesday with markets weighing reports of mediation efforts between the US and Iran.

Gold, South Africa's key export, rose more than 1% on Tuesday as investors weighed diplomatic efforts which could temper oil-driven inflation risks and influence the US Federal Reserve's interest rate path.

Domestically focused investor attention will then turn to June CPI data on Wednesday and the central bank's rate decision on Thursday.

Economists polled by Reuters expect annual inflation to have accelerated to 4.7% in June from 4.5% in May. They also forecast the central bank will raise its key interest rate by 25 basis points to 7.25%.

On the Johannesburg Stock Exchange, the Top-40 index was last up 0.8% in early trade.

South Africa's benchmark 2035 government bond was firmer in early deals, as the yield fell 3.5 basis points to 8.525%.