EM Assets Mark Worst Week Since 2020 As Oil Sees Record Rally

Emerging markets stocks and currencies posted their worst week since the outbreak of Covid as an escalating conflict in the Middle East triggered a surge in oil prices.

The MSCI EM currency gauge dropped as much as 0.7% after President Donald Trump demanded Iran’s “unconditional surrender,” trimming losses at the end of the session for a weekly decline of 1.5%. The comparable measure for EM equities fell 0.2% on the day and is down nearly 7% since the Iran war kicked off. Both marked their worst week since March 2020.