Pakistan’s stock market suffered a sharp sell-off on Tuesday, with the benchmark KSE-100 Index plunging by more than 4,200 points during intraday trading as escalating tensions between the United States and Iran sparked panic among investors.
The steep decline mirrored losses across Asian markets after US President Donald Trump announced the reinstatement of a naval blockade on Iran and said Washington would impose a 20% levy on cargo passing through the Strait of Hormuz.
The developments drove global oil prices to a one-month high, raising concerns over energy supplies, inflation and the broader economic outlook.
The Pakistan Stock Exchange opened sharply lower and remained under pressure throughout the trading session as investors rushed to offload shares amid heightened geopolitical uncertainty and rising international crude oil prices.
Analysts said the renewed conflict in the Middle East has significantly weakened investor confidence, with fears of prolonged instability weighing heavily on regional financial markets.