UPDATE 🔴
Black Swan Alert:
India-Pakistan tensions escalate into military conflict
The India-Pakistan flashpoint has turned kinetic, confirming earlier warnings.
• Pakistan’s PM called India’s actions “an act of war,” convening the National Security Council
• India conducted airstrikes on Pakistani soil with Rafale jets, SCALP missiles, and Hammer bombs, targeting alleged militant camps
• Pakistan claims it downed five Indian aircraft, reporting 8 deaths and 35 injuries
• Diplomatically, Pakistan protested to the UN; India denies civilian targeting
• U.S. supports India, Turkey backs Pakistan, China urges calm
As nuclear powers, their conflict threatens global markets.
Expect:
• Safe-haven demand for USD and U.S. treasuries
• Pressure on Asian currencies and equities
• Volatility in oil, gold; crypto may lag unless liquidity tightens
Geopolitical shocks fuel market moves. Escalation could trigger sell-offs in overstretched assets.