3 min readMar 24, 2026 06:12 AM IST First published on: Mar 24, 2026 at 06:12 AM ISTTHAT Prime Minister Narendra Modi had to invoke the Covid crisis and the need for national unity in his address to the Lok Sabha Monday shows the scale of the formidable challenges ahead: From the severe dislocation in energy supplies to the unprecedented volatility in financial markets, the shadow of missiles over a one-crore diaspora to the over-heated rhetoric by each of the three sides in the conflict that keeps ratcheting up both temperature and pressure. Underlining the need to be prepared for an eventuality, Modi said, “We faced similar challenges during the Covid crisis with unity. Now again, we must prepare in the same way.”The pain is visible. Disruptions in energy supplies are being felt across parts of the economy — from ceramic tile exporters in Morbi, Gujarat, to restaurants and hotels. The effects are not just limited to oil and gas. The Gulf region is a key choke point — it is a major supplier of fertiliser and inputs such as sulphur and ammonia. Economies could get affected in ways far beyond what the surface-level impact suggests. The second-order effects could soon start showing. Markets are hurting, too. On Monday, the BSE Sensex ended the day down 2.46 per cent. Since the beginning of this conflict, the market has been down around 10 per cent. Foreign investors have withdrawn $11.8 billion in March so far; the rupee was hovering around the 94 level against the dollar.AdvertisementIn the gathering dark, there was a glimmer when US President Donald Trump posted Monday that the US and Iran had held “very good and productive conversations” and that he would hold off military strikes against Iran’s energy sites for five days. There has been no reaction from Tehran or Tel Aviv and given Trump’s record over the last four weeks, a flip-flop could be just another social media post — or a missile — away. That said, the pause could open the much-needed space for diplomatic manoeuvring. The world is waiting for an off-ramp. Oil slumped, stocks jumped following Trump’s post. Domestic political pressure could force a reassessment of the situation as pain thresholds are breached — the national average gasoline price in the US has touched $3.95 a gallon. However, even if there’s a let-up, supply disruptions could well persist. Qatar has already said that it could take years to repair its energy infrastructure — in 2024-25, India had imported 41.4 per cent of its LNG from the country. As the zone of uncertainty expands each day, internal adjustments will be needed. The PM’s message should go down to all who will bear the costs: Households, firms, and the government.