The South African rand was steady in early trade on Friday, as stalled peace negotiations between the US and Iran dampened hopes for an immediate easing of Middle East tensions, while domestically focussed traders eye month-end data for clues on the health of Africa's largest economy.

At 0717 GMT the rand traded at 16.6175 against the dollar, little moved from its previous close.

While Lebanon and Israel extended their ceasefire for three weeks ahead of its expiration on Sunday, Iran showed off its control over the Strait of Hormuz by releasing footage of its commandos storming a huge cargo ship, leaving the timing of the reopening of the world's most important shipping corridor uncertain and keeping oil prices elevated.

South Africa is a net importer of energy, leaving it highly exposed to swings in global prices.

Headline consumer inflation edged up last month, but analysts said the increase would be far larger in April when fuel price hikes triggered by the US-Israeli war on Iran have filtered through into consumer prices.

"The biggest risk right now is a weekend surprise, geopolitical shocks have a habit of dropping on Saturdays and Sundays, and traders are nervous heading into the close," said Wichard Cilliers, head of market risk at TreasuryONE.

Cilliers added: "The situation could unravel quickly if diplomacy fails completely."

Domestic investor focus next week will be on South Africa's business cycle leading indicator, producer inflation numbers, money supply and private sector credit data, trade balance and budget balance figures.

South Africa's benchmark 2035 government bond was weaker in early deals, as the yield rose 6.5 basis points to 8.69%.