The Pakistan Stock Exchange's (PSX) benchmark index opened the week with significant gains, surging over 5,000 points during intraday trading.The KSE-100 index rose to 176,090.08 points by 10:30am, reflecting improved investor sentiment following a pause in US-Iran military tensions.Analyst Awais Ashraf of AKD Securities attributed the rally to reduced geopolitical risks and potential SBP policy rate stability.The easing of Middle East conflicts and resumption of Hormuz shipping boosted market confidence.Global oil prices also dropped, with Brent crude falling below $90 and WTI at $85.45, further supporting investor optimism.However, the KSE-100 had previously lost 2.7% last week due to escalating tensions and rising oil prices.

Analysts note that while short-term gains are driven by geopolitical relief, long-term factors like disinflationary trends and economic indicators may influence future monetary policy decisions.The market's rebound highlights the interconnectedness of global events and local economic performance.