PSX Drops Over 500 Points as US-Iran Tensions Rise

The Pakistan Stock Exchange came under pressure on Thursday as the benchmark KSE-100 Index dropped more than 500 points in intraday trading amid rising tensions between the United States and Iran.

The index touched an intraday low of 168,682.25 after closing the previous session near 169,427.44, reflecting a fall of more than 700 points at one stage. However, the market later recovered part of its losses, showing volatility rather than a one-way decline.

Selling pressure was mainly linked to geopolitical uncertainty in the Middle East, where renewed US-Iran tensions have raised concerns over global oil supplies and investor risk appetite.

Higher oil prices are a key concern for Pakistan’s economy because the country depends heavily on imported fuel. Any sustained rise in international crude prices can increase pressure on the import bill, inflation outlook, and the rupee.

Market participants remained cautious as investors assessed the possible impact of the conflict on global commodities, regional markets, and Pakistan’s economic outlook. Energy, banking, and other heavyweight sectors stayed in focus during the session.

Analysts said the market may continue to see sharp swings if tensions in the Middle East intensify further. However, the partial recovery from the day’s low suggested that investors were not completely exiting positions and were instead reacting to short-term uncertainty.

The KSE-100 has seen strong gains in recent months, supported by improving macroeconomic indicators, policy stability, and investor confidence. But external shocks, especially those linked to oil prices and geopolitical developments, remain a major risk for the market.

For now, investors are expected to track global crude prices, regional security updates, and any official response from major economies before taking fresh positions.

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