IRAN'S DECISION TO NOT BE IN PAKISTAN WEDNESDAY IS FINAL: TASNIM

Iran's state-affiliated Tasnim news agency confirmed that Tehran will not participate in a regional meeting in Pakistan on Wednesday, underscoring ongoing diplomatic tensions between the two neighbors. The decision affects risk sentiment in frontier markets, particularly through the geopolitical risk channel, as investors reassess stability in the broader South Asia and Middle East corridor. Pakistani assets may face downward pressure due to perceived isolation or reduced regional cooperation, while Iranian markets could see limited direct financial impact but increased scrutiny over foreign policy-driven volatility. Traders will watch for any official statements from Pakistan’s foreign ministry or upcoming energy trade data, as disruptions in bilateral energy discussions—particularly around the Iran-Pakistan gas pipeline—could serve as a near-term catalyst for market repricing.

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