Stocks fell sharply during intraday trading on Monday, as renewed hostilities between the United States and Iran, worsening tensions across the Middle East, and a surge in global oil prices triggered sell‑off pressure on the Pakistan Stock Exchange (PSX).
The benchmark KSE‑100 Index slipped to an intraday low of 179,448.52, down 2,793.25 points (1.53%) from the previous close of 182,241.77. Its intraday high reached 180,597.14, still 1,644.63 points (0.90%) below the prior close.
“The PSX declined more than 1% due to the Iran escalation and deteriorating Middle East situation,” said Ahsan Mehanti, Managing Director and Chief Executive Officer of Arif Habib Commodities, in an interview with Geo.tv.
Mehanti added that worries about inflation, fueled by climbing crude oil prices and the possible impact on Pakistan’s external accounts, acted as a catalyst for the selling pressure.
Analysts at Ismail Iqbal Securities also anticipated that the market would stay under pressure as geopolitical tensions continue to rise alongside higher oil prices.
“Investor sentiment is likely to remain sensitive to any fresh developments on the geopolitical and macroeconomic fronts,” the brokerage noted.
“The market opened lower after renewed US‑Iran hostilities pushed oil prices higher, leading investors to adopt a cautious approach,” commented Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited.
He added that, despite the prevailing uncertainty, support emerged at lower levels in anticipation of renewed diplomatic talks once the escalation eases.
Oil prices jumped more than 4% on Monday following another flare‑up between the United States and Iran that threatened their already fragile truce.
The renewed hostilities came after last week’s exchange of fire, while negotiators struggled to secure a lasting peace agreement to keep the Strait of Hormuz open.
The U.S. military launched a new round of strikes on Sunday after renewed fighting over the waterway saw several of Washington’s Gulf allies come under incoming fire.
Both major oil benchmarks surged as much as 4.5%, stoking fresh fears that inflation could compel central banks to raise interest rates.
The fighting followed an Iranian attack early Sunday on a commercial vessel in the strait, forcing the crew to abandon the ship after it caught fire.
Iran’s Revolutionary Guards declared, via state news agency IRNA, that “the Strait of Hormuz will remain closed until further notice and until the end of American interventions in the region.”
However, the United States Central Command asserted on X that the strait remains “open to all vessels seeking to lawfully transit.”
U.S. officials said roughly 20 vessels had been escorted through the strait in the past 24 hours, although ship‑tracking data showed minimal traffic.
Monday’s decline reversed gains from the previous session. The PSX had closed higher on Friday, with the KSE‑100 Index gaining 982.10 points (0.54%) to settle at 182,241.78. During Friday’s session the index reached an intraday high of 183,477.57 and a low of 181,880.55.