Stocks at the Pakistan Stock Exchange dropped on Thursday as a sharp rise in global oil prices, driven by escalating attacks on Gulf energy infrastructure, triggered investor concerns over inflation and fuel costs.
The benchmark KSE-100 traded between a high of 152,698.51 (down 1,593.74 points or 1.03%) and a low of 150,728.17 (down 3,564.08 points or 2.3%) against Wednesday’s close of 154,292.25.
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“PSX is under pressure today due to increased oil prices caused by the Middle East conflict. The latest attacks on the LNG field in Qatar caused oil to spike 5%, creating selling pressure in the market,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. He added that expected fuel price hikes and weakening macroeconomic indicators were further weighing on investor sentiment.
The surge in oil prices followed Iranian missile attacks on Qatar’s Ras Laffan Industrial City, damaging gas-to-liquids and liquefied natural gas (LNG) facilities. QatarEnergy reported extensive damage but confirmed that fires were under control with no injuries. US President Donald Trump warned Iran against further strikes on Qatar and threatened action against Iran’s South Pars gas field if attacks continued.
The South Pars/North Dome field, shared by Iran and Qatar, is the world’s largest gas reserve and supplies approximately 70% of Iran’s domestic natural gas. Supply disruptions also affected Saudi Arabia’s Ras Tanura refinery, though operations had resumed after earlier attacks.
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The International Energy Agency reported Gulf oil output has fallen from 30 million barrels per day last year to around 20 million, raising concerns over global supply. Brent crude surged above $112 a barrel on Thursday, reflecting heightened market volatility.
After a strong rally on Wednesday, when the KSE-100 gained 4,276 points (2.85%), the sharp reversal on Thursday underscores investor sensitivity to rising fuel costs and geopolitical tensions in the Middle East.