Global Markets Rally as US and Iran Pause Military Strikes

Global equity markets rallied on July 27, 2026, following an unofficial ceasefire as the United States halted its bombing campaign against Iran and Iran indicated it would refrain from further military action. This pause in hostilities led to a sharp decline in Brent crude oil prices, which dropped below $90 per barrel, reducing geopolitical risk premiums.

In Pakistan, the KSE-100 index of the Pakistan Stock Exchange gained over 4,000 points, reaching an intraday high of 176,214.29 points. The rally was driven by investor optimism for a diplomatic resolution and expectations that the State Bank of Pakistan would maintain its current policy rate. In London, the FTSE 100 climbed 45 points to close at 10,781, its highest level since the conflict began.

Iranian military spokesperson Mohammad Reza Akraminia confirmed the halt of retaliatory operations, claiming Washington lacked a clear strategy and was suffering from strategic decision-making fatigue. Reports indicate President Donald Trump postponed further large-scale strikes partly due to depleted U.S. defensive missile stockpiles. Meanwhile, the Iranian foreign ministry in Tehran confirmed discussions with Oman to establish maritime traffic mechanisms for the Strait of Hormuz, though it denied direct negotiations with Washington.