Karachi, June 24, 2025: The Pakistan Stock Exchange (PSX) staged a powerful rebound on Tuesday, surging by over 6,000 points after U.S. President Donald Trump announced a ceasefire agreement between Iran and Israel, easing fears of a broader regional conflict in the Middle East.
During intraday trading, the benchmark KSE-100 Index soared by 6,079 points, registering a 5.06% gain to reach 122,247 points, reflecting a wave of investor optimism following the ceasefire announcement. The sharp rally triggered the one-hour market halt, as per PSX regulations designed to manage extreme volatility.
The dramatic upswing followed a sharp decline in the previous session when the KSE-100 index plunged 3,855.77 points, or 3.21%, closing at 116,167.47 points amid escalating geopolitical tensions and market uncertainty.
According to market data, over 595 million shares valued at Rs23.49 billion were traded during Tuesday’s session.
President Trump took to his Truth Social platform late Monday, declaring that Israel and Iran had agreed to a “complete and total ceasefire”, set to be implemented in a phased manner starting around 4 a.m. GMT on Tuesday.
“It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE,” Trump posted.
He added that the agreement would mark the official end of the 12-day war, which had raised alarms globally due to its potential to disrupt international trade and oil supplies.
The announcement injected renewed confidence into regional markets, particularly Pakistan’s bourse, which had been reeling from concerns over potential conflict spillover and economic instability.
Despite Trump’s announcement, Iranian officials cast doubt over the ceasefire claim. Speaking to CNN, an Iranian source stated that Tehran had not received any formal ceasefire proposal from the United States and saw no reason to halt its military operations.
“At this very moment, the enemy is committing aggression against Iran, and Iran is on the verge of intensifying its retaliatory strikes,” the official said, dismissing U.S. and Israeli statements as “deception.”
The conflicting narratives have raised questions about the durability of the proposed truce and whether the region will see a sustained de-escalation.
Oil prices tumble on ceasefire hopes
In response to the ceasefire announcement, global oil prices dropped sharply on Tuesday amid easing concerns over supply disruptions in the Middle East — a major oil-producing region.
- Brent crude fell by $2.08, or 2.9%, to $69.40 per barrel as of 0330 GMT, after dipping more than 4% to its lowest since June 11.
- West Texas Intermediate (WTI) dropped $2.03, or 3.0%, to $66.48 per barrel, having earlier plunged 6% to levels last seen on June 9.
The market response highlights the interconnectedness of geopolitical developments, energy markets, and investor sentiment globally — with Pakistan’s stock market serving as a clear example of how regional peace efforts can yield immediate economic and financial benefits.
