The International Monetary Fund (IMF) has issued a warning regarding the heightened risks faced by emerging economies as a consequence of the ongoing Iran war. According to the IMF, a total of $4 trillion flowed into these economies last year from non-bank investors, such as hedge funds and investment funds, which can lead to increased volatility. While this market-based finance can enhance access to capital and support economic integration, it is also more susceptible to abrupt withdrawals during financial crises, potentially causing significant economic strain. The IMF's analysis indicates that hedge funds and mutual funds exhibit the highest likelihood of withdrawing investments during periods of market instability, contrasting with the more cautious behavior of pension funds and insurers. Furthermore, investments in private credit have surged, with estimates suggesting they have increased fivefold to between $50-100 billion over the last decade. As finance ministers and central bankers prepare for discussions in Washington, the IMF's managing director, Kristalina Georgieva, emphasized that the economic fallout from the conflict is likely to lead to higher prices and slower growth globally, with lingering effects even if the war were to cease immediately.