New Delhi, March 16 -- As global markets grapple with the war in the Middle East, which has driven crude oil prices sharply higher and raised inflation risks, reports of major private credit firms capping or blocking withdrawals due to increased redemption requests have added to investor concerns.

According to news agency Reuters, BlackRock has limited withdrawals from a debt fund.

Similarly, a Bloomberg report stated that Morgan Stanley and Cliffwater LLC capped withdrawals from their private credit funds.

According to the Financial Times, Blue Owl, a major private credit firm, will "permanently restrict investors from withdrawing cash from its inaugural private retail debt fund."

The nearly $2 trillion private credit market is seein...