PSX sinks 3,500 points as war fears trigger market retreat

The Pakistan Stock Exchange suffered a sharp sell-off on Thursday, with the benchmark KSE-100 index closing 3,500 points lower after fresh remarks from US President Donald Trump darkened hopes for a quick end to the war on Iran. The fall reflected a broader shift into risk-off trading as investors reacted to worsening geopolitical uncertainty.

Market participants said rising fears of prolonged conflict, coupled with a jump in global oil prices, pushed sentiment decisively negative. The benchmark index finished at 152,011.26 points, with losses spread widely across the board after traders cut exposure to risk-sensitive positions.

Brokerage commentary described the decline as part of a wider global market retreat. Analysts said the combination of war-related uncertainty and higher crude prices fed expectations of inflationary pressure and economic strain, making investors more defensive.

The drop at the Karachi bourse mirrored weakness across major international markets, where equities also came under pressure. For Pakistan, the slump underlined how quickly external geopolitical shocks are spilling over into domestic financial conditions, especially through the channels of energy costs, investor confidence and market volatility.