The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Monday as escalating tensions in the Middle East and a sharp rise in global oil prices dampened investor sentiment and raised concerns about Pakistan’s economic outlook.
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The benchmark KSE-100 Index fell more than 1% during intraday trading, touching a low of 168,432.45 points, down 2,046.49 points from the previous close of 170,478.94. The index also hit an intraday high of 169,360.54 before extending losses as selling intensified across key sectors.
Market analysts attributed the decline to renewed conflict involving Iran and Israel, which has driven oil prices sharply higher and increased uncertainty in global financial markets. Investors fear that prolonged instability in the Middle East could disrupt energy supplies and place additional pressure on Pakistan’s external account.
According to market experts, concerns over rising import costs, inflationary pressures and the possibility of tighter monetary policy also contributed to the negative sentiment. Uncertainty surrounding the upcoming federal budget further encouraged investors to adopt a cautious approach.
International oil prices surged after reports of fresh military strikes and explosions in Iran. Brent crude rose above $96 per barrel, while US crude futures climbed past $93 per barrel, reversing losses recorded late last week on hopes of de-escalation.
The sell-off in Karachi mirrored broader weakness across Asian markets. Major regional indexes, including Japan’s Nikkei, South Korea’s KOSPI and Taiwan’s benchmark index, also recorded significant declines as investors reacted to geopolitical risks and concerns over global economic growth.
The KSE-100 Index had already ended the previous session in negative territory, shedding nearly 700 points. Monday’s losses extended that downward trend as investors weighed the potential economic impact of higher energy prices and ongoing regional instability.
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Analysts said market direction in the coming days will likely depend on developments in the Middle East, oil price movements and budget-related announcements.