The recent US–Iran peace deal, while appearing as a diplomatic success, is rooted in necessity for Pakistan’s leadership. Prime Minister Shehbaz Sharif and Army Chief General Asim Munir faced immense pressure from both economic vulnerabilities and geopolitical dynamics. With Pakistan's economy deeply tied to the Gulf region, any extended conflict could lead to skyrocketing fuel prices and disrupt remittance flows from over 5 million Pakistanis working abroad. This economic strain could trigger austerity measures, deepen inflation, and risk a balance-of-payments crisis, jeopardizing ongoing support from the International Monetary Fund (IMF). The United States sought a diplomatic pause without direct negotiations with Iran, making Pakistan's strategic position essential. Islamabad's role was largely seen as a result of US pressure, with Munir engaging in backchannel communications with US and Iranian officials. While the ceasefire has positioned Pakistan as a diplomatic player, it also carries risks, as failure could expose the leadership to criticism. As the situation evolves, the effectiveness of Pakistan's mediation will be tested.