Geopolitical Tensions Shake Emerging Markets
Emerging markets tumbled amid intensified U.S.-Iran tensions, with stocks and currencies hitting two-week lows. Investors opted for safer assets, boosting the U.S. dollar. Iran's potential Strait of Hormuz closure loomed over energy prices, while diverse regional impacts were observed in stocks and currencies across Turkey, Saudi Arabia, and South Africa.
Emerging market stocks and currencies faced tumultuous trading on Monday, brushing near two-week lows as heightened U.S.-Iran tensions cast a long shadow of geopolitical uncertainty.
The U.S. intensified its military actions against Iran, leading to Iranian threats of retaliation. This sent waves through Middle Eastern stock markets, with Israeli stocks slipping 0.7% from their record highs and Turkey's market dropping 0.6%.
Investor fears were further stoked by reports of Iran's parliament nearing a decision to close the vital Strait of Hormuz, a move set to upend global energy supplies and inflate oil prices to new heights. Amidst the chaos, the U.S. dollar gained strength as a safe haven, rising 0.3% against emerging market currencies.
(With inputs from agencies.)
ALSO READ
Tensions Surge as Israel Strikes Iran and Strait of Hormuz Threat Looms
Navigating Tensions: Strait of Hormuz Amid Escalating Middle East Conflicts
High Seas Tensions: Merchant Shipping Navigates Increasing Risks in Strait of Hormuz
Tensions Rise as Former Economy Minister Suggests Control Over Strait of Hormuz
Tensions Surge as Iran Considers Closing Strait of Hormuz
Google News