Colombia Local Debt Selloff Turns to Rally on Oil Surge

Higher oil prices driven by the Iran war sparked a rally in Colombia’s local debt this week, converting it from the worst performing in emerging markets to the leading gainer as the price of its main export surged more than 20%.

The jump in crude prices took a toll on other risk assets, which tumbled this week as investors flocked to safe havens. But for Colombia — where about a quarter of exports comes from oil — it helped offset traders’ sour mood over a growing fiscal deficit and upcoming presidential elections.