US-Iran Escalation: The US carried out another round of strikes on Iran late Wednesday/Thursday, hitting nearly 90 Iranian military targets along the coast, as Washington said the goal is to keep the Strait of Hormuz open after attacks on commercial shipping; Iran’s Revolutionary Guards retaliated by striking US bases in Kuwait and Bahrain, with Gulf states reporting missile/drone alerts. Hormuz Risk to Energy Flows: The renewed fighting has revived fears of shipping disruption in the chokepoint that carries about one-fifth of global oil and gas, with the UN urging operators to avoid the strait and markets again pricing higher risk. Markets React: Oil climbed back toward/above $79-$80 while stocks fell; the dollar firmed and gold slipped as investors weighed inflation pressure and higher rate bets. Inflation Spillovers: The Bank of Japan warned the Middle East conflict is feeding faster pass-through of energy and raw material costs into prices, while China’s producer inflation jumped on Iran-linked energy/petrochemical costs. Regional Economy Watch: The Asian Development Bank cut its 2026 growth forecast for developing Asia and the Pacific, citing prolonged energy-market disruptions; India’s IMF outlook stayed resilient but flagged the drag from higher oil prices. Energy Security Diplomacy: India and Australia reiterated energy-security cooperation and concern over West Asia disruptions, while pushing resilient supply chains and open energy trade.