Markets capped a brutal fifth consecutive week of declines as the Iran war ground past the one-month mark with no diplomatic offramp, sending the Dow to its 2026 closing low on a 750-point drop fueled by inflation fears and Fed paralysis. The stagflationary trap has fully materialized — Iraqi oil output down 70% is driving energy-led inflation higher while simultaneously choking growth, leaving the Fed pinned with no room to cut. Record foreign capital flight, including $12B pulled from Indian equities alone, signals a global risk-off rotation that is accelerating rather than stabilizing. With equity correlations spiking to 0.79 and systematic selling pressure building, the traditional diversification playbook is broken and capital preservation is the only reliable strategy.