Overview
- Reports of a tentative U.S.–Iran agreement on Monday triggered a broad rally in risk assets, with Pakistan’s KSE-100 rising about 4,640 points and India’s Sensex gaining roughly 736 points as investors welcomed reduced geopolitical risk.
- Brent and U.S. crude fell about 4–5% to the low‑$80s a barrel on the headlines, reflecting market hopes for restored oil flows through the Strait of Hormuz.
- Shipping and energy firms say normal transit will take weeks to months because roughly 500 vessels remain queued around Hormuz and ports must clear cargo and safety checks before flows fully resume.
- The market rally showed clear sector rotation into real estate, consumer and domestic cyclical names while pharmaceuticals and metals lagged, and foreign institutional flows and domestic economic factors are now being watched closely.
- Analysts urged caution because the understanding is preliminary, unresolved issues such as Iran’s nuclear future remain, and upcoming central bank decisions—including the Bank of Japan’s move—plus India’s monsoon and Pakistan’s policy stance will determine whether gains hold.