Fitch Ratings on Monday said the Iran conflict could raise additional challenges for some emerging market sovereigns in areas like energy imports, remittances and exchange rates.On February 28, the US and Israel launched military strikes on Iran who retaliated with attacks on US positions in the region, as well as Israel.In a report titled 'Iran conflict raises new credit risks for emerging market sovereigns', Fitch said more sustained disruption to global energy supplies from the Gulf than envisaged under its baseline could significantly damage global investor sentiment."We expect this would result in a stronger US dollar and weaken the market for debt issuance, particularly for highly speculative-grade issuers. Higher energy prices could put upward pressure on inflation, affecting monetary policy decisions globally," the report said.Fitch said oil and gas imports are the most direct channel for contagion from the conflict, given its effect on global energy prices. For larger
Iran war could raise challenges for emerging market sovereigns: Fitch
