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Emerging Markets Plunge Amid Iran Risk Concerns

3/7/2026

27 3 Full Breakdown

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Story summary
  • In March 2026, emerging market equity funds declined as investors priced in Iran-related risks.
  • Funds focused on Pakistan, Chile, and Argentina were among the worst performers.
  • The MSCI Emerging Markets index fell over 6% this week, unlike global indices.
  • The U.S.-Iran conflict has raised risks for concentrated, tech-heavy EM investments, affecting South Korean stocks, and Goldman Sachs maintains a positive earnings growth forecast for EM in 2026.