KARACHI: The Pakistan Stock Exchange (PSX) saw a sharp decline on Monday, with the KSE-100 index plunging 3,855.77 points to close at 116,167.47. The steep drop came as investors grew increasingly anxious over the possibility of Iranian retaliation following U.S. strikes on its nuclear facilities over the weekend, sparking concerns about regional stability, global economic activity, and inflation.
This marked a significant shift from Friday’s session, when the index had shown a modest gain of 20.65 points, closing at 120,023.24.
Alongside the market downturn, oil prices surged on Monday, hitting their highest levels since January. The price jump followed the U.S. decision to join Israel in attacking key Iranian nuclear sites, heightening fears of potential supply disruptions.
Brent crude rose by $1.52 (1.97%) to $78.53 per barrel as of early Monday, while U.S. West Texas Intermediate climbed $1.51 (2.04%) to $75.35. Earlier in the session, both benchmarks had spiked over 3%, reaching $81.40 and $78.40, respectively—their highest levels in five months—before easing slightly.
The oil price surge came after the U.S. President stated that Iran’s main nuclear facilities had been destroyed in the strikes. Iran, a major crude producer and a key member of OPEC, has vowed to respond, adding to fears of further escalation.
Analysts warn that any Iranian move to block the Strait of Hormuz—a vital route for around 20% of the world’s oil supply—could drive prices even higher and deepen market uncertainty.
