What's Happening
The U.S. has spent $11 billion in the first week of Iran military operations, triggering supply panic across global energy markets. Russian oil can reach markets quickly, but the conflict's broader disruption fears are far larger. India's Modi government faces domestic dissent over alignment with the Trump administration on Iran policy.
Market Impact
Oil price volatility is cascading into airline ticket costs and broader commodity inflation. Gold slipped below $5,100/oz as energy prices pressured precious metals. Energy-dependent sectors face margin compression; travel and logistics face immediate cost headwinds.
Broader Implications
The conflict fractures traditional U.S. alliances in Asia while forcing budget trade-offs domestically. Iran's reported movement of hundreds of millions in cryptocurrency during internet blackouts signals state actors are hedging against financial isolation.