The Pakistan Stock Exchange benchmark KSE-100 index jumped more than 1,700 points in early trade on Monday, marking a decisive shift in market sentiment.
The rally pushed the index to hover around the 182,945 level, continuing a positive momentum that had begun earlier in the week.
This move follows a dramatic turnaround on Wednesday, when the index had already surged more than 2,500 points to end a two-day losing streak.
The surge comes as global oil prices tumbled after US President Donald Trump announced that fresh talks with Iran would begin later in the day.
For Pakistan, a major importer of crude, the drop in energy costs alleviates immediate pressure on the trade deficit and current account, providing a tailwind for equity valuations.
This move follows a dramatic turnaround on Wednesday, when the index had already surged more than 2,500 points to end a two-day losing streak.
The consecutive gains suggest that investors are increasingly pricing in a de-escalation of geopolitical risks in the Middle East, which has long been a source of volatility for emerging markets in the region.