India, April 6 -- The West Asia conflict shows no signs of an immediate resolution even after over a month, leaving global markets preoccupied with three imponderables: How long the conflict will last, how severe it may become, and what the new normal might look like once it ends. Much of the global commentary has focused on projecting oil price paths as a shorthand for these uncertainties. Yet the impact of this conflict extends well beyond energy prices. Its multidimensional nature has prompted countries to respond through varied strategies - administrative interventions, fiscal buffers, monetary adjustments, and, in some cases, simply relying on market-driven price adjustments.

Oil price shocks have repeatedly tested the world economy...