Key Points
- European and Asian equities post strong gains following the statement
- Massive bullish rallies trigger market halt after sharp early-session surge
ISLAMABAD: Global oil prices fell sharply below $100 a barrel, and equities rallied on Wednesday after US President Donald Trump said the war with Iran could end within two to three weeks.
The de-escalation statements from the US President prompted a broad-based response across international and Pakistani markets. Bulls returned to the Pakistan Stock Exchange with the opening of trade to gain over five per cent, sufficient for the circuit breaker activation. The Market reopened after an hour’s cooling and corrected a percentile down.
Brent crude declined around five per cent to $98.77 per barrel, falling below the $100 mark, and US West Texas Intermediate dropped about four per cent to $97.28.
The fall came immediately after the statement, reflecting expectations of reduced supply disruptions linked to the conflict.
In Europe, stock markets opened firmly higher. Indices in Frankfurt and Paris rose more than two per cent, and London’s FTSE 100 advanced 1.7 per cent.
Asian markets also recorded strong gains, with benchmark indices in Japan and South Korea rising sharply as investors reacted to the prospect of an end to hostilities in the Middle East.
At home, the Pakistan Stock Exchange recorded a sharp rally. The benchmark KSE-100 Index surged more than 8,500 points in early trade, crossing 157,300 before paring gains later in the session.
As of 1:49 p.m. PST, the index stood at 156,252.35, up 7,509.04 points or 5.05 per cent, after correcting from earlier levels. The session high was 157,347.17, and the low was 151,262.76, with traded volume exceeding 321 million shares.
A market halt was triggered during the session after the KSE-100 index rose five per cent from the previous close, in accordance with exchange rules. Trading resumed shortly afterwards.
Gains were recorded across major sectors including banking, oil and gas, fertiliser, cement and automobiles. Heavyweight stocks in these sectors remained in positive territory throughout the session.
Analysts said the decline in oil prices and the statement from Washington reduced immediate geopolitical risk, supporting equities, particularly in import-dependent markets such as Pakistan.
The KSE-100 had declined about 15 per cent in the first quarter of 2026 amid sustained selling pressure linked to the conflict.
Despite the current rally, the index remains down more than 10 per cent against the level a year ago.
