PSX Tumbles Over 2,000 Points as Middle East Tensions Hit Markets
KARACHI, PAKISTAN — WEB DESK: The Pakistan Stock Exchange came under heavy selling pressure on Monday as escalating tensions in the Middle East, higher global oil prices and concerns over shipping disruptions weighed on investor sentiment.
The benchmark KSE-100 Index dropped as much as 2,077 points during intraday trading, falling to 168,434.73 points, according to Express Urdu. The report said selling persisted despite fluctuations during the session.
Independent market reporting confirmed the broader sell-off. Business Recorder reported that by 1pm, the KSE-100 was at 169,032.17, down 1,479.68 points, or 0.87%, as investors reacted to renewed Houthi attacks on Saudi Arabia and Iranian attacks on vessels in the Gulf.
The difference between those figures reflects different points during a volatile intraday session rather than conflicting closing data.
Rising international crude prices are adding to investor concerns. For Pakistan, which relies heavily on imported energy, sustained increases in oil prices can raise the import bill, add inflationary pressure and create additional risks for the external account.
Express attributed Monday’s selling pressure to a combination of higher crude prices, shipping disruptions and concerns surrounding international trade as instability across the Middle East continues.
The regional escalation has also affected markets beyond Pakistan. Saudi Arabia’s benchmark stock index fell on Monday as investors assessed attacks on the kingdom’s energy infrastructure. A drone strike had temporarily shut the East-West oil pipeline, while attacks on maritime vessels near the Strait of Hormuz further increased regional security concerns.
Pakistan’s equity market has been particularly sensitive to Middle East developments in recent sessions. The KSE-100 lost more than 3,000 points on September 10, settling at 168,865.04, before rebounding nearly 1% on September 11 to close at 170,511.85 on hopes that regional tensions could ease.
Monday’s renewed decline indicates that geopolitical risk remains a major driver of short-term investor sentiment.
Oil prices and the security of shipping routes such as the Strait of Hormuz remain particularly important for Pakistan because prolonged disruption could translate into higher energy import costs and broader inflationary pressure.
With the trading session still underway at the time of the initial reports, the 2,077-point decline should be treated as an intraday movement rather than the day’s final closing loss. The closing KSE-100 level may differ significantly depending on late-session buying or additional selling.
