KARACHI – The Pakistan Stock Exchange (PSX) witnessed a strong rally on Tuesday as US President Donald Trump’s remarks suggesting a pause in military escalation with Iran boosted investor confidence and triggered heavy buying.
During intraday trading, the benchmark KSE-100 Index surged by 4,120.34 points to reach 178,007.02 points, registering a gain of 2.37 percent against the previous close of 173,886 points.
Meanwhile, Oil prices extended their decline on Tuesday as easing concerns over a possible military escalation between the US and Iran reduced fears of prolonged disruptions to energy supplies from the Middle East.
Brent crude futures dropped 70 cents, or 0.75%, to $91.88 per barrel by 0246 GMT. Meanwhile, US West Texas Intermediate (WTI) crude slipped 78 cents, or 0.90%, to $86.07 per barrel. Both benchmarks had recorded losses of around 1% earlier in the trading session.
Market sentiment improved after US President Donald Trump indicated that Washington would refrain from launching further military strikes against Iran for now.
His remarks followed diplomatic appeals from regional countries urging restraint, including discussions with Qatar’s prime minister during meetings at the White House.
The developments eased immediate concerns among traders about a potential escalation that could threaten oil production and transportation routes across the Middle East.
