KARACHI – The Pakistan Stock Exchange (PSX) opened sharply higher on Monday, with investors rushing to buy stocks after reports of a peace agreement between the United States and Iran boosted market sentiment.

The benchmark KSE-100 Index jumped 3,487.59 points in early trading, rising to 175,887.49 points from the previous close of 172,399.90 points.

Market analysts said investor confidence strengthened on expectations that easing tensions between Washington and Tehran could reduce regional uncertainty and support global economic stability.

Optimism was further fueled by reports that the agreement would pave the way for the reopening of the Strait of Hormuz, a key route for global oil shipments.

The positive development triggered broad-based buying across major sectors, helping the benchmark index post strong gains at the start of the trading session.

The US and Iran have reached a peace deal, ending military operations on all fronts immediately and permanently.

Prime Minister Shehbaz Sharif made the announcement on X, saying both sides have agreed to the peace deal after intensive talks.

He added that the official signing ceremony will be on Friday, 19 June in Switzerland.

“We would like to thank the United States of America and the Islamic Republic of Iran for their commitment to finding a diplomatic solution to the conflict. We would also like to extend our sincere appreciation to our brothers in this mediation effort, the great leadership of State of Qatar, for their support in reaching this agreement. I would also especially thank the visionary leadership of Kingdom of Saudi Arabia and Republic of Türkiye for their immense contributions in this regard,” the premier wrote on X.

With the agreement now in place, mediators will facilitate a series of meetings this week. These pre-implementation discussions will lay the foundation for the technical talks and the official signing ceremony, he said.