Azerbaijan announced plans for retaliatory measures on March 5, 2026, after four Iranian drones crossed into its Nakhchivan exclave, injuring four people. President Ilham Aliyev condemned the incident as an "unprovoked act of terror," directing military forces to prepare responses. One drone struck Nakhchivan International Airport’s terminal building, while another landed near a village school, according to authorities investigating the attack.
Turkey Calls for Diplomatic De-escalation
Turkish President Recep Tayyip Erdogan warned of alarming regional tensions during a Thursday address, pledging intensified diplomacy to prevent further escalation. Türkiye reaffirmed its commitment to border security and multilateral dialogue to stabilize the Middle East amid growing concerns about conflict spillover.
Global Markets React to Energy Volatility
Asian stocks faced their steepest weekly decline since 2020 on March 6, while oil prices surged to a three-year high. Investors shifted to safer assets as prolonged U.S.-Israel operations in Iran raised fears of sustained energy disruptions. The U.S. national gasoline average rose 27 cents in a week to $3.25 per gallon, mirroring spikes seen during the 2022 Russia-Ukraine conflict. European bond yields also climbed sharply, reflecting inflation concerns tied to energy markets.
Analysts warn that sustained price pressures could delay central bank rate cuts, with ING’s Chris Turner noting, "This is a global phenomenon, not confined to one region."
