Pakistan’s stock market witnessed a powerful rally on Tuesday after US President Donald Trump announced a temporary delay in a planned military strike on Iran, triggering renewed investor confidence across regional financial markets.
The benchmark index at the Pakistan Stock Exchange surged more than 2,000 points during intraday trading as fears of an immediate escalation in Middle East tensions eased. Investors returned aggressively to the market amid hopes that diplomatic efforts between Washington and Tehran could prevent a wider regional conflict.
The KSE-100 index climbed by 2,248 points to reach 164,053 points in early trading, extending recent gains and reflecting stronger risk appetite among local and foreign investors.
Market sentiment improved significantly after Trump revealed that the planned military action had been postponed following requests from Saudi Arabia, Qatar, and the United Arab Emirates. Reports suggesting that Tehran had submitted a revised proposal aimed at reviving negotiations with the United States also helped calm markets.
Currency markets also reacted positively to the development. In the interbank market, the Pakistani rupee posted a marginal recovery against the US dollar, which slipped by 0.03 rupees to 278.57 compared to the previous close of 278.60.
Financial analysts said the easing of immediate geopolitical concerns encouraged buying activity in equities, particularly in banking, energy, and blue-chip sectors. However, experts warned that volatility may continue as the situation in the Gulf region remains highly sensitive and subject to rapid changes.
Trump stated that Iran now had a “very good chance” of reaching an agreement with the United States, though he emphasized that military action was still possible if diplomatic talks failed.
The latest developments come at a time when global investors remain closely focused on Middle East stability, as any escalation involving Iran could disrupt oil supplies, increase inflationary pressure, and negatively impact emerging markets including Pakistan.
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