The Pakistan Stock Exchange (PSX) fell sharply on Monday as renewed uncertainty over US–Iran relations, rising global oil prices, and weak international equities triggered broad-based selling pressure in the market.
The benchmark KSE-100 Index declined to an intraday low of 169,226.56, losing 4,712.45 points, or 2.71%, compared to the previous close of 173,939.01. During the session, the index also touched a high of 174,523.76 before reversing gains.
Market analysts said investor sentiment weakened amid escalating geopolitical tensions and concerns over stalled diplomatic engagement between Washington and Tehran.
“Stocks witnessed selling amid concerns over reignited US-Iran tensions,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities. He added that rising government bond yields, weakness in global equities, and a surge in international crude oil prices contributed to bearish activity at the PSX.
Iran’s foreign ministry spokesperson Esmaeil Baghaei said Tehran currently has no plans for a second round of negotiations with the United States, adding to uncertainty over the resumption of diplomatic talks reportedly scheduled in Pakistan. Iranian state media also indicated that participation in future talks remains uncertain, with some reports suggesting the lifting of the US blockade is a precondition for dialogue.
Global oil markets surged amid escalating tensions in the Strait of Hormuz, a critical energy shipping route. Brent crude rose more than 6%, while West Texas Intermediate (WTI) gained over 7% at one point after Iran briefly closed the strait again over the weekend, citing US naval restrictions on Iranian ports.
The escalation followed reports of a US naval operation targeting an Iranian vessel attempting to bypass the blockade, prompting Tehran to warn of retaliation.
The decline marked a reversal from Friday’s strong rally, when the KSE-100 Index had gained 4,027.06 points, or 2.37%, to close at 173,939.01, after reaching an intraday high of 174,404.03.