The Financial Post reports in its Wednesday edition that the sell-off in emerging markets deepened Tuesday, as the war in Iran triggers investors to adjust to the risks of resurgent inflation and reprice bets on interest-rate cuts. A Bloomberg dispatch to the Post reports that the Korean won sank after a local holiday, falling to the lowest since 2009 against the greenback, which rallied more than 1 per cent. Currencies in Chile and Hungary, countries that are highly dependent on oil imports, sank more than 3.5 per cent each as Brent crude surged past $85 (U.S.) a barrel. The sell-off worsened amid the prospect of a prolonged disruption, with investors in the dark about how long the war in Iran will last amid conflicting messages from the U.S. and continued air strikes. Jumping oil and natural gas prices added to concerns over a flare-up in inflation that will limit the scope for global rate cuts. Traders pared bets on U.S. Federal Reserve easing to price a 50-per-cent chance of a second quarter-point cut this year. MSCI's benchmark for EM currencies was down as much as 1.6 per cent -- the biggest drop on a closing basis since 2013. A sister gauge of developing-nation equities was down by more than 4 per cent.