Trump issues final ultimatum to Iran, emerging market assets "foot the bill"

格隆汇 March 23｜Due to Trump's ultimatum to Iran, which has increased the risk of further disruptions in Middle Eastern energy supplies, emerging market asset prices have declined. In early trading on Monday, the MSCI Emerging Markets Index fell by 2.5%, mainly affected by the drop in share prices of South Korean chip manufacturers. As the Iran war has lasted for four weeks and there are still no signs of easing, risk assets remain under pressure. "Our view is that caution is needed now, not panic," said Martin Schulz, Head of International Equity Investments at Federated Hermes. "The duration of the conflict is the main issue. The longer this situation persists, the worse it will get."