Analysis: The cost of credit default protection in Middle Eastern countries remains high.

Due to cautiousness from investors about the Middle East conflict, the cost of default protection for sovereign debt in Middle Eastern countries remains high. Kallum Pickering of Peel Hunt stated in a report that reaching a quick solution seems more difficult, and even if the fighting ends, there is still a risk of the Strait of Hormuz continuing to be closed. Data from S&P Global Market Intelligence shows that Bahrain's five-year credit default swap spread is at 314 basis points, 100 basis points higher than before the outbreak of the Middle East war a month ago. Qatar's five-year CDS spread has risen by 23 basis points since the start of the war, now standing at 55 basis points.