On Monday, Pakistan's KSE 100 index plummeted nearly 6,000 points, a 3.5% drop, following the breakdown of ceasefire talks between the US and Iran, which had been facilitated by Prime Minister Shehbaz Sharif and army chief Asim Munir. The index had surged over 12,000 points last week amid hopes for a peace deal, marking one of its largest intraday gains. However, the failure to reach an agreement has led to renewed geopolitical tensions, particularly after US President Donald Trump announced military actions in the Strait of Hormuz, a vital shipping route for oil. This announcement has further strained relations, with Iran's Revolutionary Guards warning against military vessels in the area. The overall sentiment in Asian markets is bearish, with major indices like India's Sensex and Nifty also declining by more than 2%. Despite the current turmoil, some analysts, including Jefferies' Christopher Wood, suggest that Pakistan's equity market could present high returns if macroeconomic stability is restored through IMF support.