Karachi, Pakistan – Web Desk: The Pakistan Stock Exchange (PSX) suffered a severe sell-off on Monday, March 9, 2026, with the benchmark KSE-100 index plummeting more than 13,000 points in early trading before closing sharply lower, driven by escalating tensions in the Middle East war involving the US, Israel, and Iran, alongside investor concerns over potential policy rate hikes by the State Bank of Pakistan.
The KSE-100 index fell 13,109.39 points, or 8.32%, to settle at 144,386.71, compared to the previous close. Trading was briefly suspended after the index dropped over 10,000 points at the open, reflecting panic selling as investors withdrew funds amid heightened geopolitical risks.
The sharp decline comes amid a broader global market reaction to the ongoing conflict, now in its second week, which has disrupted oil supplies through the Strait of Hormuz and prompted production cuts by major producers including Iraq and Kuwait, with expectations that the UAE and Saudi Arabia may follow due to storage constraints.
International oil prices surged nearly 20% on Monday, reaching multi-year highs not seen since 2022. Brent crude futures climbed as much as $18.35 (19.8%) to $111.04 per barrel, later trading around $107–$108 levels in some reports, while WTI crude rose up to $20.34 (22.4%) to $111.24 before settling higher. This follows massive gains last week, amplifying fears of prolonged supply disruptions, damaged infrastructure, and elevated shipping risks that could sustain higher fuel prices worldwide for weeks or months.
Analysts link the PSX rout directly to these developments, as Pakistan remains heavily reliant on imported oil, making the economy vulnerable to spiking energy costs, inflation pressures, and potential monetary policy tightening.
