ISLAMABAD (Dunya news) – Pakistan Stock Exchange (PSX) showed a strong upward trend amid hopes for resumption of peace talks between the US and Iran.
On the third day of the trading week, the KSE-100 opened with significant gains, reflecting renewed investor confidence. During trading, benchmark index surged by over 5,000 points, reaching 170,640 points.
Market analysts attributed the rally to optimism spurred by international developments and the positive impact of the peace-related statement on investor sentiment.
Oil prices fell for a second day on Wednesday on expectations peace talks between the U.S. and Iran may resume and eventually release supply from the key Middle East producing region trapped by the closure of the Strait of Hormuz.
Brent crude futures fell 52 cents, or 0.55%, to $94.27 a barrel at 0054 GMT after falling 4.6% in the previous session. U.S. West Texas Intermediate crude was down $1.04, or 1.1%, to $90.24 after dropping 7.9% the session before.
Talks to end the war between the U.S. and Israel and Iran could resume in Pakistan over the next two days, U.S. President Donald Trump said on Tuesday, after the collapse of negotiations over the weekend prompted Washington to impose a blockade on Iranian ports. This has increased optimism talks could eventually settle the conflict and open up crude oil and fuel flows.
The war has shut the Strait of Hormuz, a key waterway for crude and refined product flows out of the Gulf to global buyers, particularly in Asia and Europe.
Despite a two-week ceasefire, transit through the strait remains uncertain, with traffic at only a fraction of the 130 or so vessels that moved through the waterway before the war, sources said on Tuesday.