South Asia on the Brink: India-Pakistan Military Conflict Escalates Amid Airstrikes and Cross-Border Tensions – Full Timeline (May 7, 2025)
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Overview
As of May 7, 2025, India and Pakistan stand at the edge of a full-blown military conflict, following coordinated airstrikes, retaliatory actions, and intense shelling across the Line of Control (LoC). What began as a counterterrorism operation has now spiraled into a dangerous confrontation between two nuclear-armed neighbors. This article summarizes the events so far and evaluates the potential implications on regional stability and financial markets.
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Key Events Timeline
April 22, 2025 – The Spark
A deadly terrorist attack in Pahalgam, Indian-administered Kashmir, kills 26 civilians.
India blames Pakistan-based militant groups and vows retaliation.
May 6, 2025 – India Launches "Operation Sindoor"
India conducts precision airstrikes on nine targets in Pakistan and Pakistan-administered Kashmir including Kotli, Muzaffarabad, and Bahawalpur.
Indian authorities claim the targets were terror camps and that civilian areas were deliberately avoided.
This is India’s largest military action since the 2019 Balakot strikes.
May 6–7, 2025 – Pakistan Responds
Pakistan calls the strikes an act of war and launches a retaliatory air offensive.
Pakistan Air Force claims it has shot down at least two Indian fighter jets and hit military positions in Indian-administered Kashmir.
At least 8 civilians have been reported dead in Pakistan with 22 injured due to Indian airstrikes.
May 7, 2025 – Ongoing Tensions
Cross-border artillery shelling continues along several LoC sectors including Kupwara, Poonch, and Sialkot.
India conducts civil defence drills in 244 districts, marking its largest-ever peacetime preparedness activity.
Pakistan closes airspace over parts of Punjab and deploys anti-air defense systems in key regions.
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Civilian Impact
Thousands of civilians have been evacuated from border villages.
Panic buying is reported in both countries amid fears of escalation.
Schools and government offices in border districts remain closed.
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International Reactions
United Nations, United States, and China have called for urgent de-escalation.
The UN has offered to mediate talks between the two countries.
Global financial markets react cautiously, with spikes in oil prices and investor movement toward safe-haven assets.
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Crypto & Financial Implications
The South Asian conflict has triggered increased Bitcoin activity in India and Pakistan, as retail investors hedge against local currency volatility.
Stablecoins like USDT and USDC$BTC are gaining traction on regional P2P platforms.
Trading volumes on decentralized exchanges (DEXs) in South Asia have increased by over 12% since the start of May.
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Current Situation (as of May 7, 2025, 6:00 PM IST)
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Conclusion
The next 48 hours are critical. Both governments face mounting internal and international pressure to avoid escalation. While the conflict has not yet reached the level of ground warfare, the potential for miscalculation is dangerously high. Investors, policymakers, and civilians alike must remain vigilant as South Asia teeters on the brink.
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