The Pakistan Stock Exchange (PSX) came under significant pressure on Monday as heightened geopolitical tensions and a sharp rise in global oil prices sparked widespread selling.
The benchmark KSE-100 Index initially climbed to an intraday high of 118,798.51 but later plunged by 1,224.72 points (-1.02%). It hit a session low of 117,977.81, marking a steeper decline of 2,045.42 points (-1.19%) before partially recovering.
“Markets are under stress due to the intensifying conflict between Iran and Israel,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “The spike in oil prices—up over 25% from recent lows—has triggered fresh inflationary concerns, prompting investors to reassess risk exposure.”
The turmoil follows U.S. airstrikes on multiple Iranian nuclear sites over the weekend. President Donald Trump hailed the strikes as “a spectacular military success,” with B-2 Spirit stealth bombers targeting key nuclear facilities in Fordow, Natanz, and Isfahan.
The attacks sparked fears of broader regional instability and potential disruptions in global energy supply. Iran, the world’s ninth-largest oil producer, pumps around 3.3 million barrels per day, exporting nearly half of that. Analysts warn that a retaliatory move by Tehran could include closing the Strait of Hormuz—a vital channel through which nearly 20% of the world’s oil shipments pass.
Reports suggest Iran’s parliament supports the potential closure, with a final decision expected from the Supreme National Security Council.
The market’s sharp decline on Monday followed a relatively flat close on Friday, when the KSE-100 Index gained just 20.65 points (+0.02%) to settle at 120,023.24. That session saw a high of 120,828.86 and a low of 119,872.16.
