The Pakistan Stock Exchange (PSX) benchmark index opened the week with a significant surge, gaining over 7,000 points during intraday trading.The KSE-100 index rose 4,501.33 points to 175,522.53 by 9:50am, later reaching 178,000 points by 3:09pm.

Analysts attribute this rally to eased geopolitical tensions between the US and Iran, which paused military strikes and allowed shipping through the Strait of Hormuz.

Awais Ashraf of AKD Securities noted improved investor sentiment and expectations that the State Bank of Pakistan (SBP) will maintain the policy rate unchanged.Mettis Global linked the rise to geopolitical easing and falling global oil prices, with Brent crude dropping 7% and WTI falling 4%.The market had previously faced pressure due to Middle East tensions and rising oil prices, but the ceasefire provided relief.The article also highlights ongoing disinflationary trends and the SBP's potential for monetary easing.