Emerging market equities and currencies are poised for a fourth straight week of losses as persistent missile attacks in the Middle East cast doubt on ceasefire prospects and drive oil prices above $110 per barrel. The MSCI equity index fell 0.8%, with Asian markets leading the decline, while the emerging market currency index dropped 0.4%. Both markets are set for their first monthly declines since November as investors rush to buy U.S. dollars. The dollar rose 0.2% on Friday, on track for its first monthly gain since October. The Indian rupee, Mexican peso, and Hungarian forint underperformed their peers. Recent developments in the Middle East indicate that Iran has declared steel plants in Israel and other Gulf countries as legitimate military targets following attacks by the U.S. and Israel on two of Iran's largest steel manufacturers. "My biggest concern is an escalation into a more severe scenario," said Jeff Grills, Head of U.S. Cross-Asset and Emerging Market Debt at Aegon Asset Management. "Any material disruption to oil production or transportation would pose a significant risk to emerging markets."