Pakistan’s stock market declined sharply on Monday as investor sentiment weakened following the failure of US–Iran talks to reach a lasting agreement, while renewed tensions over the Strait of Hormuz pushed global oil prices back above $100 per barrel.
The benchmark KSE-100 Index at the Pakistan Stock Exchange (PSX) traded in negative territory throughout the session, hitting an intraday high of 163,560.94 points, down 3,630.43 points or 2.17%, and a low of 161,638.07 points, down 5,553.3 points or 3.32%, compared to the previous close of 167,191.37.
Market analysts said sentiment was hit by rising geopolitical uncertainty and concerns over energy supply disruptions. Independent analyst AAH Soomro noted that investors reacted negatively to the lack of progress in the US–Iran negotiations and growing risks linked to maritime tensions in the Strait of Hormuz.
He added that US statements regarding tighter control over Iranian maritime activity had pushed international oil prices higher by $6 to $7 per barrel, taking crude back above the $100 mark, which added further pressure on emerging markets like Pakistan.
Volatility is expected to persist in the coming days as investors monitor developments in diplomatic efforts and energy market stability.
Oil prices surged after the breakdown of talks between Washington and Tehran, with reports indicating that the United States is moving to increase pressure on Iran’s shipping routes. US President Donald Trump had said the US Navy would begin restricting maritime traffic entering and exiting Iranian ports, intensifying concerns over the strategic Strait of Hormuz.
The US Central Command reportedly confirmed that implementation of maritime restrictions would begin at 10am ET (7pm Pakistan Standard Time) on Monday, targeting vessels linked to Iranian ports.
Elsewhere in Asia, equity markets also reflected cautious sentiment, with South Korea’s Kospi falling around 2% before partially recovering, while Japan’s Nikkei index slipped 0.3%.
In the previous trading session, the KSE-100 had gained 1,673.87 points, or 1.01%, closing at 167,191.37 after fluctuating between 168,290.29 and 166,221.33. The broader KSE-30 index also rose 420.31 points, or 0.84%, to 50,589.37.