LONDON- Lebanon's dollar bonds fell and the cost of insuring exposure to its debt jumped on Tuesday, as Saudi Arabia accused Beirut of declaring war against it, a dramatic escalation of a crisis engulfing the country.

Lebanon's 2022 issue LB055923779= fell 1.95 cents to 93.5 cents in the dollar, the lowest level since July 2013, according to Thomson Reuters data.

Five-year credit default swaps (CDS) for Lebanon LBGV5YUSAC=MG jumped 13 basis points (bps) from Monday's close to 550 bps, according to IHS Markit data, the highest level since early December.



(Reporting by Claire Milhench, editing by Marc Jones) ((claire.milhench@thomsonreuters.com; +44)(0)(207 542 3571; Reuters Messaging: claire.milhench.thomsonreuters.com@reuters.net))