The International Monetary Fund said demand for Angola’s bonds will wane if the Iran war continues, putting pressure on inflation and the southern African nation’s currency amid higher import costs.

“The appetite of capital markets for Angola’s securities will cool” if the Middle East conflict persists, IMF country representative Victor Lledo told reporters in Luanda, the capital, on Thursday. Rising fuel, fertilizer and food-import costs create “inflationary pressure and exchange-rate pressure,” he said.