Saudi-Iran Tension Rattles Lebanese Bonds After PM Resignation
- Resignation raises fear of proxy confrontation in Lebanon
- Hariri blamed Iran, its Hezbollah ally for his decision
Former Lebanese prime minister Saad Hariri.
Photographer: Jan Hennop/AFP/Getty Images
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Lebanese bonds dropped on Monday after Prime Minister Saad al-Hariri unexpectedly resigned in a speech from Saudi Arabia, raising concerns that a renewed confrontation between the kingdom and regional rival Iran could destabilize the country.
The yield on Lebanon’s $750 million Eurobonds due 2037 jumped 63 basis points, the most since they were issued in March, according to data compiled by Bloomberg. Shares in Solidere, the property developer founded by Hariri’s late father, plunged 7.6 percent.