Regional tensions escalate as geopolitical powers clash. The Kurdistan Regional Government has categorically denied involvement in any campaign to expand conflict with Iran, rejecting reports of coordination with Israeli and US forces. However, intelligence agencies allegedly continue arming Kurdish opposition groups along the Iraq-Iran border. Meanwhile, Iran's Islamic Revolution Guards Corps claims full preparedness for prolonged conflict, stating new strategic weapons remain unused. The dispute highlights how regional proxy dynamics and military buildups create unpredictable escalation risks. Markets remain sensitive to Middle East tensions as energy prices and geopolitical risk premiums could surge if conflict expands beyond current boundaries.