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Due to Trump's ultimatum to Iran, the risk of further disruptions in Middle East energy supply has led to a drop in prices of emerging market assets. The MSCI Emerging Markets Index fell 2.5% in early trading on Monday, mainly impacted by the decline in the stock prices of South Korean chip manufacturers. With the Iran conflict now in its fourth week and no signs of easing, risk assets continue to face pressure. "Our view is that caution is needed now, not panic," said Martin Schulz, head of international equities at Frederik Hamer. "The timeline is the major issue. The longer this situation continues, the worse it will get."
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