The military conflict in the Middle East, triggered by joint US and Israeli strikes on Iran, coupled with fresh US trade investigations, has increased volatility in global financial markets, the Reserve Bank of India (RBI) said on Monday. The central bank, in its State of the Economy report, said that a prolonged period of war and high uncertainty would pose serious risks to the global economic outlook, “which was already in a state of flux prior to the recent events.” It, however, noted that India’s foreign exchange reserves remain adequate to cushion against external shocks.