What's Happening
Pakistan has declared an "open war" against Afghanistan, accusing the Taliban-led government of harboring the Pakistani Taliban. This escalation follows months of border skirmishes and diplomatic tensions between the two countries.
Market Impact
Regional instability could affect markets sensitive to geopolitical risks, particularly in sectors like energy and defense. Investors may seek safe-haven assets, impacting currency and commodity markets.
Broader Implications
This conflict underscores the fragile security situation in South Asia, potentially drawing in international stakeholders and complicating U.S. and NATO withdrawal plans from the region.
