West Asia

• Stock market sentiment this week will be primarily driven by geopolitical tensions in West Asia and the resulting fluctuations in crude oil prices. • Analysts, including Ajit Mishra of Religare Broking Ltd, highlight that domestic factors such as southwest monsoon progress and foreign investor activity will also play key roles. • Investors will closely monitor critical macroeconomic indicators, specifically Industrial Production (IIP) data, foreign exchange reserves, and final HSBC PMI readings.

• Ram Singh, Director of the Delhi School of Economics, stated that the easing of conflict in West Asia has reduced the downside risks to India's 6.6% growth forecast. • Growth prospects may be further bolstered by the moderation of El Nino effects and the resolution of ongoing geopolitical uncertainties. • The operationalization of Free Trade Agreements (FTAs) with 37 countries is expected to drive economic expansion by boosting foreign direct investment (FDI) and exports.

• The Islamic Revolutionary Guard Corps (IRGC) claims to have destroyed eight U.S. military infrastructures located in Kuwait and Bahrain. • The operation was carried out using a combination of missiles and drones in a coordinated joint strike. • This action was launched as a direct response to a second wave of U.S. military strikes against Iranian interests.

• Bahrain has accused Iran of launching a drone attack targeting the island kingdom, escalating tensions in the region. • The United States and Iran have exchanged military strikes following U.S. accusations that Tehran attacked a cargo ship, threatening a fragile ceasefire. • To stabilize the region, the U.S. State Department is facilitating a new “Military Coordination Group for Lebanon” to implement a strategic framework.

• Former Bangladesh Prime Minister Sheikh Hasina has condemned the current BNP-led government and the previous interim administration under Muhammad Yunus for suppressing democracy. • Hasina specifically challenged the legitimacy of the February 12 election, asserting that it was invalid because her party, the Awami League, was barred from participating. • She urged party members to remain united and stated that the struggle to restore democratic processes will be pursued through both legal and political channels.

• A UN agency has paused its initiative to evacuate ships from the Strait of Hormuz following a recent attack on a vessel in the region. • Tensions remain high as the U.S. and Iran issue conflicting statements while negotiators continue to push for a final, comprehensive peace deal. • A senior Lebanese military official disputed claims of an Israeli pullback, stating that Israeli forces continue to strictly enforce a buffer zone.

• Iran and the United States have signed a Memorandum of Understanding (MoU) to end the conflict in West Asia and ensure the Strait of Hormuz remains open. • As part of the agreement, fighting in Lebanon is set to cease to address the escalating humanitarian crisis in the region. • Following the deal, eleven India-bound ships have successfully transited through the Strait of Hormuz, restoring critical maritime trade routes.