The U.S.-Israeli conflict between Iran and Iran has resulted in a near-fatal freeze in emerging economies' debt spending, leading to a decrease in demand for their debt. This comes after a surge in fund-raising from Angola, boosted by the recent spike in crude oil prices. Investors have withdrawn $3.3 billion from emerging-market debt in the week leading up to March 19, and over $5 billion out of high-yield corporate bonds, marking the biggest outflow since the U.K. tariff shock in April 2025. The JPMorgan EMBI spread between emerging-area dollar debt and U.,S. Treasuries has widened by 17 basis points since late February, while Egypt's and Turkey's credit spreads have widened due to the impact the war could have on their economies. The conflict has led to investor caution in investing in most assets, with attacks on Gulf countries' energy infrastructure and the closure of the vital Strait of Hormuz.