The Pakistan Stock Exchange (PSX) witnessed sharp losses on Monday as intensifying geopolitical tensions in the Middle East and a surge in global oil prices triggered widespread investor anxiety.
The benchmark KSE-100 Index tumbled significantly during the day, reaching an intraday high of 118,798.51 points before plunging by 1,224.72 points, or 1.02%. The index further dropped to a session low of 117,977.81 points, marking a deeper decline of 2,045.42 points, or 1.19%.
“Markets are under pressure due to the escalating conflict between Iran and Israel,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “Oil prices have spiked more than 25% from their recent lows, stoking fears of rising inflation. Investors are now reassessing market risk accordingly.”
The turmoil followed a series of U.S. airstrikes on Iranian nuclear facilities over the weekend. President Donald Trump described the strikes — which targeted strategic sites in Fordow, Natanz, and Isfahan using B-2 Spirit stealth bombers — as “a spectacular military success.”
The escalation has sparked fears of major disruptions to global energy supplies. Iran, the world’s ninth-largest oil producer, pumps around 3.3 million barrels of crude per day, exporting nearly half. Analysts warn that any Iranian retaliation could involve closing the Strait of Hormuz — a critical maritime chokepoint responsible for transporting roughly 20% of the world’s oil.
Reports indicate that Iranian lawmakers have expressed support for such a move, while the country’s Supreme National Security Council is expected to decide on the matter imminently.
The downturn followed a modest gain on Friday when the KSE-100 Index edged up by 20.65 points, or 0.02%, to close at 120,023.24. That session’s high and low were recorded at 120,828.86 and 119,872.16, respectively.
Market analysts say the situation remains fluid, and further volatility in both regional politics and energy prices could continue to weigh on investor sentiment in the days ahead.
