Many asset classes in emerging markets have been hit hard by the Israeli military's attack on Iran, driving up oil prices and triggering investors to flock to safe-haven assets. The exchange rate of the shekel against the US dollar once fell 3%, the biggest one-day decline in five years, then narrowed. The region's stock markets generally fell sharply from Dubai to Istanbul, while Egyptian and Israeli dollar bonds led the decline in emerging and frontier markets. The Tel Aviv stock market is closed for the weekend. A key measure of foreign exchange returns in emerging markets fell 0.2% from a record high on Friday. The MSCI Emerging Markets Equity Index once fell 1.1% and hit a three-year high this week.

Many asset classes in emerging markets have been hit hard by the Israeli military's attack on Iran, driving up oil prices and triggering investors to flock to safe-haven assets. The exchange rate of the shekel against the US dollar once fell 3%, the biggest one-day decline in five years, then narrowed. The region's stock markets generally fell sharply from Dubai to Istanbul, while Egyptian and Israeli dollar bonds led the decline in emerging and frontier markets. The Tel Aviv stock market is closed for the weekend. A key measure of foreign exchange returns in emerging markets fell 0.2% from a record high on Friday. The MSCI Emerging Markets Equity Index once fell 1.1% and hit a three-year high this week.