On Tuesday, Pakistan's stock market experienced a remarkable rally, with the KSE-100 index soaring nearly 4,000 points in early trading, driven by fresh hopes for peace negotiations between the United States and Iran. This optimism follows a previous round of talks, facilitated by Pakistan's Prime Minister Shehbaz Sharif and army chief Asim Munir, which did not result in a peace agreement but left avenues for dialogue open. Reports suggest that the US is still engaging with Iran, despite recent tensions, and a US official indicated there is forward momentum towards an agreement. President Donald Trump noted that Iran has expressed a desire to negotiate following the imposition of a naval blockade by the US on Iranian ports. The positive sentiment from potential peace talks contributed to a decline in Brent crude oil prices, which fell nearly 2% to $97.5 per barrel. The KSE-100 index has shown significant volatility, having surged over 12,000 points last week before experiencing a drop of over 6,000 points after the collapse of peace talks over the weekend. Despite these fluctuations, analysts view Pakistan's market as a high-beta opportunity, especially with support from the International Monetary Fund (IMF).