James Craige, CIO and director of emerging markets at Stone Harbor Investment Partners, told Bloomberg that investing in Iran remains distant despite ongoing regional tensions. Speaking on 'Bloomberg ETF IQ' with hosts Katie Greifeld and Eric Balchunas, Craige explained that geopolitical risks and sanctions continue to make Iranian markets inaccessible for most investors.

Instead, Craige is focusing on positioning in countries surrounding Iran and broader Middle East exposure. His firm manages the Virtus Stone Harbor Emerging Markets High Yield Bond ETF (ticker: VEMY), which provides diversified exposure to emerging market debt. This strategy allows investors to capture regional growth without direct exposure to Iranian markets.

The cautious approach reflects broader institutional hesitation about Iran's investment potential. While some see long-term opportunity in Iran's large consumer market and energy resources, regulatory barriers and political uncertainty keep most major investors on the sidelines. Craige's comments underscore that meaningful Western investment in Iran remains unlikely in the near term.