Pakistan has officially declared a state of "all-out war" against Afghanistan, launching significant airstrikes targeting the capital city, Kabul. The military escalation follows intense border clashes, with the Pakistani military reporting the death of 274 Taliban fighters, while the Taliban claims 55 Pakistani casualties. Tensions have peaked due to long-standing disputes over the Durand Line and Pakistani allegations that Afghanistan provides a safe haven for TTP militants. Financial markets are reacting with concern, as the conflict threatens regional stability and exerts significant downward pressure on the Pakistani Rupee (PKR). Investors are shifting toward safe-haven assets like Gold (XAU/USD), while monitoring potential disruptions to energy markets and Brent Crude prices.
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