The Pakistan Stock Exchange (PSX) witnessed one of its steepest single-day declines on Tuesday as escalating tensions between the United States and Iran, coupled with soaring global oil prices, triggered widespread selling across major sectors.
The benchmark KSE-100 Index came under heavy pressure from the opening bell, losing more than 3,000 points within the first few minutes of trading. Selling intensified throughout the session, dragging the index to an intraday low of 174,615.03 before it settled at 173,518.81, down 6,408.23 points, or 3.56%, from the previous close.
The sell-off affected nearly all major sectors, with commercial banks, oil and gas exploration companies, oil marketing firms, cement manufacturers, automobile assemblers and power generation companies recording significant losses as investors reacted to heightened geopolitical uncertainty.
Market sentiment weakened after the United States carried out a third consecutive night of military strikes on Iran. President Donald Trump also announced the reinstatement of a blockade on Iranian shipping and proposed a 20% fee on cargo passing through the Strait of Hormuz, raising concerns over disruptions to one of the world’s most critical energy trade routes.
The United Arab Emirates reported that at least two oil tankers came under Iranian fire in the Strait of Hormuz, while Tehran maintained its right to control the strategic waterway. Meanwhile, Bahrain and Jordan said they intercepted fresh Iranian missile and drone attacks, further intensifying fears of a broader regional conflict.
The geopolitical developments also pushed global oil prices higher. Brent crude rose to around $84.80 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed to nearly $79.84 per barrel, increasing concerns over inflationary pressures and higher import costs for energy-dependent economies such as Pakistan.
Tuesday’s sharp decline extended losses from the previous trading session. On Monday, the KSE-100 Index had fallen below the 180,000-point mark, closing at 179,927.05, down 2,314.73 points, or 1.27%, amid growing concerns over regional instability.
Global equity markets also remained volatile, with Asian shares trading mixed as investors weighed the implications of the escalating conflict and higher energy prices. Analysts said uncertainty surrounding developments in the Middle East is likely to keep financial markets under pressure until geopolitical risks begin to ease.
