Stocks recovered some ground on Tuesday as easing global oil prices and renewed hopes of US-Iran diplomacy lifted sentiment after the previous session's sharp selloff.
The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index settled at 162,896.68 points, up 1,091.66 points, or 0.67%, from the previous close of 161,805.02.
During the session, the index climbed to an intraday high of 164,309.64, gaining 2,504.62 points, or 1.55%, before retreating to a low of 162,563.58, reflecting a gain of 758.56 points, or 0.47%.
"Global oil prices are down, Trump has posted on social media delaying military strikes, Saudi and Iran FM have spoken," said AAH Soomro, an independent investment and economic analyst.
"There seem to be extra efforts to mediate and resolve the conflict via dialogue," he added.
Asian markets were mixed on Tuesday as oil prices eased on hopes of a US-Iran deal, though elevated crude levels continued to cap investor appetite for risk.
Energy markets remained in focus after US President Donald Trump signalled "serious negotiations" with Tehran and called off planned strikes, raising optimism that tensions could ease.
The war launched by the United States and Israel on February 28 has led to an effective blockade of the Strait of Hormuz, through which around 20% of global oil exports passed in peacetime.
Trump said the leaders of Qatar, Saudi Arabia and the United Arab Emirates had asked him to hold off on a planned military attack on Iran because serious negotiations were taking place.
However, he also said the US military remained prepared to launch a "full, large scale assault" if an acceptable deal was not reached.
International benchmark Brent hovered around $109, while West Texas Intermediate stood at $107.
In regional markets, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.22%, while Japan's Nikkei rose 1%. South Korea's Kospi fell 2%.
Nasdaq futures reversed early gains to trade 0.07% lower, while S&P 500 futures lost 0.03%. In Europe, EUROSTOXX 50 futures rose 0.4%, while FTSE and DAX futures edged 0.3% and 0.4% higher, respectively.
In the previous session on Monday, the KSE-100 Index tumbled 3,791.05 points, or 2.29%, to close at 161,805.02, as selling pressure swept across the board amid cautious sentiment.
