Pakistan has allowed Iran to station military aircraft on its airfields, a move that raises geopolitical tensions in the region, especially given Pakistan's role as a mediator in the US-Iran conflict. This development could affect risk appetite among investors, as it signals a potential shift in alliances and military posturing, impacting regional stability. The Iranian and Pakistani markets may experience increased volatility as geopolitical risks become more pronounced, particularly in sectors sensitive to military and defense dynamics. Traders will be closely watching any subsequent diplomatic responses from the US and other regional powers, especially following the upcoming talks regarding the Iran nuclear deal.
Pakistan Allows Iran to Base Military Aircraft, Heightening Tensions
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