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Gulf markets hit by Iran tensions

The escalation of tensions with Iran has meant that financial markets in the Gulf have underperformed those in the rest of the emerging world so far this year. While the MSCI emerging market equity has gained nearly 9% since the start of this month, most stock markets in the Gulf have fallen by around 1-2%. At the same time, CDS premia in a number of countries including Saudi and the UAE have hit 12-month highs. 

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