PSX Falls Nearly 2,300 Points as Iran Tensions Shake Markets

The Pakistan Stock Exchange came under sharp pressure on Monday as investors reacted to worsening geopolitical tensions in the Gulf, with the benchmark KSE-100 Index losing nearly 2,300 points during early trade.

The sell-off reflected a rapid shift in market mood after renewed US-Iran hostilities unsettled global investors and pushed oil prices higher. By 9:43am, the KSE-100 was hovering around 179,972.52, showing a fall of 2,269.25 points, or about 1.25 percent.

Selling was broad-based rather than limited to a single sector. Automobile assemblers, cement companies, commercial banks, exploration and production firms, oil marketing companies and power-sector stocks all came under pressure as investors moved away from risk.

Several heavyweight shares, including HUBCO, MARI, OGDC, PSO, SSGC, SNGPL, MCB, MEBL, NBP and UBL, were trading lower. The widespread decline showed that the market was responding not only to company-level concerns but also to a wider global risk shock.

The latest weakness followed a difficult previous week for the PSX, when the market broke its winning streak after fresh US-Iran military strikes damaged investor confidence. The KSE-100 had already fallen 1.7 percent week-on-week, losing 3,130.43 points to close at 182,241.77.

Global market conditions added to the pressure in Karachi. Asian equities fell as fighting intensified in the Gulf and Iran claimed it had closed the Strait of Hormuz, a critical route for global energy shipments. The possibility of disruption in energy supplies immediately raised concerns about inflation, trade costs and pressure on external accounts.

Oil markets reacted strongly to the crisis. Brent crude rose 4.1 percent to $79.11 a barrel, while US crude also advanced 4.1 percent to $74.37. US officials said around 20 vessels had been escorted through the strait during the previous 24 hours, although ship-tracking data suggested limited traffic movement.

For Pakistan, the market decline carries added economic significance because higher global oil prices can quickly feed into fuel costs, inflation expectations and the import bill. Investors are also watching whether a prolonged Gulf crisis could affect currency stability, energy supplies and the government’s broader economic recovery narrative.

The coming sessions will be crucial for assessing whether the PSX decline remains an intraday reaction or turns into a deeper correction. Market sentiment is likely to depend on the direction of Gulf tensions, movement in crude prices, foreign investor behaviour and any official reassurance on Pakistan’s exposure to external energy shocks.

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