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Ceasefire Uncertainty Fuels Investor Concerns in South Asia

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India and Pakistan agreed to a U.S.-brokered ceasefire on Saturday after days of heavy cross-border fighting. But just hours later, explosions in Srinagar and Jammu raised doubts about how long the truce would hold, Reuters reports.

India’s Foreign Secretary Vikram Misri said in a briefing: “For the last few hours there have been repeated violations of the understanding arrived at earlier this evening between the director generals of military operations of India and Pakistan”

“This is a breach of an understanding arrived at earlier today,” Misri added.

Also Read: US And China Accelerate Arms Race With Billions In Military Sales To Nuclear Neighbors, As India Turns To Washington And Pakistan Deepens Ties With Beijing Amid Escalating Border Conflict

However, Pakistan’s Information Minister Attaullah Tarar told Geo News that no ceasefire violations have occurred, despite rising tensions along the LoC, per a report from Al Jazeera.

 Early on Saturday morning, President Trump made a casual announcement about the ceasefire agreement between India and Pakistan.

“After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE. Congratulations to both Countries on using Common Sense and Great Intelligence. Thank you for your attention to this matter!,” Trump posted on Truth Social.

The ceasefire, brokered with assistance from the United States, Saudi Arabia, and Turkey, aimed to halt the most severe military confrontation between the two nations in nearly three decades.

The conflict was initially triggered by India’s airstrikes on what it described as “terrorist infrastructure” in Pakistani-administered Kashmir, following a deadly attack that killed 26 Hindu tourists in Indian Kashmir. Despite the agreement, Indian officials accused Pakistan of violating the ceasefire through cross-border shelling and drone intrusions, leading to further escalations.

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