Mumbai, March 5 -- The ongoing conflict in West Asia following the U.S.-Israeli attack on Iran and the subsequent retaliatory strikes by Iran across the region could increase economic and market volatility, particularly if the conflict continues for several weeks, according to a report by Morgan Stanley.

The report noted that the duration of the conflict will be a key factor determining its economic and financial market impact.

It said that a short and contained conflict could limit the economic spillovers, but a prolonged conflict could lead to sustained economic pressure through higher oil prices, rising inflation and uncertain financial conditions.

It stated, "The length of the conflict remains a key risk that could add to economic ...