Karachi, Pakistan – Web Desk: The Pakistan Stock Exchange (PSX) witnessed a massive sell-off on Tuesday, with the benchmark KSE-100 Index plunging over 4,200 points as escalating US-Iran tensions over the Strait of Hormuz sparked panic selling across all sectors .
Market in Freefall
The index opened sharply lower and remained under pressure throughout the session. By 12:44pm, the KSE-100 was trading at 175,683.38, down 4,243.66 points, or 2.36%, from the previous close of 179,927.04 . The index touched an intraday low of 174,615.03 and a high of 178,112.04, reflecting extreme volatility. Trading volume reached 242.26 million shares worth Rs20.44 billion .
Factors Behind the Sell-Off
The market rout followed US President Donald Trump’s announcement reinstating a naval blockade on Iran and proposing a 20% levy on all cargo shipped through the Strait of Hormuz . The developments pushed oil prices to a one-month high, fueling concerns over global energy supplies and inflation .
Economic Impact
Investors adopted a risk-off strategy as fears of a wider Middle East conflict overshadowed positive domestic triggers. Rising oil prices are seen as a negative for Pakistan’s import-dependent economy, adding to concerns over inflation, the external account, and corporate profitability .
Analysts expect volatility to persist as investors closely monitor geopolitical developments and international oil prices .
