Source in Pakistan's Prime Minister's Office: The Prime Minister meets the Iranian Foreign Minister in Islamabad

Pakistan's Prime Minister hosted Iran's Foreign Minister in Islamabad, signaling high-level diplomatic engagement between the two neighboring countries. The meeting is likely to influence regional risk appetite, particularly affecting frontier market sentiment and cross-border trade expectations, as improved bilateral relations could ease geopolitical tensions in the region. Assets linked to Iran and Pakistan may see reduced risk premiums, especially in sectors sensitive to political stability such as energy infrastructure and regional transportation. Increased diplomatic coordination could also impact energy trade flows, given Iran's role as an oil producer and Pakistan's growing energy import needs. Traders will watch for any joint statements on energy cooperation or regional connectivity projects, such as the Iran-Pakistan gas pipeline, for near-term market-moving details.

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