India-Pakistan Conflict: Cease-Fire Sparks Signs of Stability

Tue Jul 01 2025 23:44:49 GMT+0300 (Eastern European Summer Time)
India-Pakistan Conflict: Cease-Fire Sparks Signs of Stability

Cease-fire agreement leads to a resumption of civilian flights and a boost in stock markets in India and Pakistan.


Following a tense period of aggressive confrontation between India and Pakistan, a recently brokered cease-fire has instilled a sense of hope and normalcy, as both nations witness positive economic and logistical developments.

The resumption of civilian flights across northern India and open airports in Pakistan marked a significant return to regularity on Monday, signaling confidence in the cease-fire that temporarily halted extensive conflict between the two nuclear rivals. On the first trading day post-agreement, stock markets in both nations responded favorably. The Karachi 100 index in Pakistan soared by nearly 9%, prompting a temporary halt in trading due to the rapid ascent, while India’s markets quickly rebounded from prior losses.

Despite the apparent relief and stock market optimism, the situation on the ground remains uncertain with many individuals still displaced from their homes due to the recent violence, which culminated in serious military actions last week. Prior to the cease-fire, both nations engaged in fierce aerial and artillery exchanges, with claims of severe damage inflicted on military establishments. As fears linger of potential flare-ups, military leaders from both countries are expected to convene to evaluate the cease-fire's sustainability.

The recent clashes were set into motion by a devastating terrorist attack in Kashmir, which New Delhi attributed to groups backed by Pakistan—an allegation that Islamabad vehemently disputed. India's military response involved airstrikes on suspected terrorist installations in Pakistan, marking one of the most aggressive stances taken between the two countries in decades. The situation escalated to include extensive cross-border shelling and aerial maneuvers, pressing both sides further into conflict.

U.S. mediation, led by President Trump, ultimately provided a diplomatic resolution as the cease-fire deal was struck, drawing on historical patterns of foreign intervention to mitigate tensions between the long-standing adversaries. As discussions surrounding the future of the cease-fire continue, there lies cautious optimism that this moment of reprieve could lead to more stable conditions in the region.

Mujib Mashal, South Asia bureau chief for The Times, and Hari Kumar, a journalist based out of New Delhi, have contributed to the coverage of this critical story, alongside regional reporters from Jammu and Kashmir and Islamabad.

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