Israel and Iran have resumed direct attacks, putting the April ceasefire at risk and raising fears of a wider Middle East conflict. Israel said it hit military targets in western and central Iran after Iran fired missiles at northern Israel, following an Israeli strike on Hizbollah in Beirut. The immediate economic risk is energy: the Strait of Hormuz is a key route for oil and gas, so any renewed disruption could push fuel prices higher and make inflation harder to control. That would complicate rate-cut hopes, especially in economies already battling sticky prices. Markets moved quickly into risk-off mode: oil jumped sharply, with Brent up almost 5% towards $98 a barrel and WTI near $95, while global stocks fell and bond yields rose as investors priced in higher geopolitical and inflation risk.