Pakistan's Defence Minister has declared an "open war" with Afghanistan's Taliban government, according to reports from Al Jazeera. The announcement follows explosions in Kabul and continued fighting along the border shared by the two nations.
Earlier, a Taliban spokesperson stated that Afghanistan was conducting "large-scale offensive operations" against the Pakistani military. This rapid escalation marks a severe deterioration in regional stability, introducing significant new geopolitical uncertainty into global markets. The conflict threatens to disrupt regional trade and could draw in other international powers, heightening risk aversion among investors.
Market Impact: The S&P 500 fell -0.76%, the Nasdaq Composite dropped -1.15%, and the Dow Jones slid -1.17%. In cryptocurrency markets, Bitcoin has fallen -1.74% since the last session close, and Ethereum is down -3.33%.