The KSE‑100 index hit a day’s low of 161,993 before recovering some losses. This follows a historic surge on Wednesday, when the index jumped over 12,000 points, its biggest intraday gain in absolute terms, after news of a temporary ceasefire between the US and Iran eased geopolitical tensions and boosted investor confidence across the region.
Earlier this week, Trump said the US had agreed to a two-week pause in attacks and had received a 10-point proposal from Iran, which he described as a workable basis for negotiations.
“This will be a double-sided CEASEFIRE!” he wrote on Truth Social. “The reason for doing so is that we have already met and exceeded all military objectives, and are very far along with a definitive agreement concerning long-term PEACE with Iran, and PEACE in the Middle East,” he added.
Iran agreed to allow safe passage through the Strait of Hormuz for two weeks. Iran’s Foreign Minister issued a statement on behalf of the Supreme National Security Council, thanking Pakistan’s leaders for brokering the talks.
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“Considering the brotherly request of PM Sharif in his tweet, the request by the U.S. for negotiations based on its 15-point proposal, and the announcement by POTUS about acceptance of the general framework of Iran’s 10-point proposal as a basis for negotiations,” he said, explaining Iran’s reasons for accepting the ceasefire.
Pakistan, mediating between the US and Iran, requested the two-week extension to allow diplomacy to proceed. Iran’s Supreme Security Council said negotiations with the United States would begin on April 10 in Islamabad, after submitting its proposal via Pakistan, though it added that the talks did not signal an end to the war.
Ceasefire hopes fade
After Iran and the US agreed to the brief ceasefire, providing relief to global stock markets, Israel continued its parallel operations against the Iran-aligned Hezbollah in Lebanon.
Iran accused both Israel and the US of violating the ceasefire terms, stating that proceeding with peace talks under these conditions would be “unreasonable.”
The Strait of Hormuz, slated to reopen for traffic, remained closed to vessels. “Violations of the ceasefire have been reported at a few places across the conflict zone, which undermine the spirit of the peace process,” Pakistani Prime Minister Shehbaz Sharif said in a post on X.
Trump, meanwhile, reiterated on Truth Social that the US would ensure the Strait is open and safe:
“All US ships, aircraft, and military personnel, with additional ammunition, weaponry, and anything else appropriate and necessary for the lethal prosecution and destruction of an already substantially degraded enemy, will remain in place in and around Iran until the REAL AGREEMENT is fully complied with.”
He added: “If for any reason it is not, which is highly unlikely, then the ‘Shootin’ Starts,’ bigger, better, and stronger than anyone has ever seen. It was agreed a long time ago, and despite all fake rhetoric to the contrary—NO NUCLEAR WEAPONS, and the Strait of Hormuz WILL BE OPEN & SAFE. In the meantime, our great military is loading up and resting, looking forward to its next conquest. AMERICA IS BACK!”
Investors have been on edge for weeks as escalating tensions in West Asia triggered sharp market swings. The KSE‑100 index had previously suffered a major setback on March 2, plunging more than 16,000 points amid reports of a high-profile assassination tied to the Supreme Leader.
At home, global market weakness spilled over to Dalal Street, with the Sensex dropping over 800 points and Nifty falling below 23,800 in the morning.
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