Geopolitical Tensions in Hormuz Trigger 4,200‑Point Decline in Pakistan Stock Exchange

The KSE-100 index faced heavy pressure as geopolitical risks undermined investor confidence.

KARACHI:

Intense selling pressure swept the Pakistan Stock Exchange (PSX) on Tuesday as escalating US‑Iran tensions sparked panic selling, pulling the benchmark KSE‑100 Index down by more than 4,200 points during intraday trading.

The decline reflected broader weakness in Asian equity markets following US President Donald Trump’s announcement of a renewed naval blockade on Iran and a 20% levy on cargo transiting the Strait of Hormuz, which drove oil prices to a one‑month high and raised concerns about global energy supplies and inflation.

The market opened sharply lower and stayed under pressure throughout the session as investors sold equities amid heightened geopolitical uncertainty and rising international oil prices.

Read: Escalation in the Middle East triggers a sharp sell‑off at the PSX

At 9:54 am, the KSE‑100 had already fallen 3,733.34 points (2.07%) to 176,193.70, indicating broad‑based selling from the opening bell. By 12:44 pm, the index was trading at 175,683.38, down 4,243.66 points (2.36%) from the previous close of 179,927.04.

The index fluctuated between an intraday high of 178,112.04 and a low of 174,615.03, underscoring heightened volatility. Overall traded volume reached 242.26 million shares, with turnover of Rs20.44 billion.

Investors took a risk‑off approach as concerns over a broader Middle East conflict eclipsed positive domestic factors. Higher oil prices also weigh on Pakistan’s import‑dependent economy, intensifying worries about inflation, the external account and corporate profitability.

Volatility is expected to persist as investors closely monitor geopolitical developments and fluctuations in international oil prices.

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