Middle East War Could Lead to Higher Defaults in Europe -- Market Talk

Dow Jones03-24

1315 GMT - The Middle East war risks driving up corporate defaults in Europe due to the effects of the conflict, analysts at the Investment Institute by UniCredit say in a note. "High oil and gas prices and interrupted supply chains create new credit risks, potentially leading to higher default rates in the medium term," they say. Credit markets are showing early signs of stress, with an increase in the share of iBoxx CCC-rated credit trading at distressed levels to nearly 50%, from 20% prior to the Middle East war, the analysts say. A prolonged war and high energy costs would create a negative environment for some European issuers, they say. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

March 24, 2026 09:15 ET (13:15 GMT)

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