Pakistan Stock Exchange drops 3.50pc after Trump says US-Iran Ceasefire Is ‘Over’

KARACHI – Pakistan Stock Exchange (PSX) suffered massive sell-off, with flagship benchmark KSE-100 Index plunging more than 6,400 points as escalating tensions between US and Iran rattled investor sentiment and triggered widespread panic selling.

The market came under pressure after the US launched fresh airstrikes on Iran and reinstated sanctions on Iranian crude oil exports. Selling accelerated further after US President Donald Trump declared the Memorandum of Understanding (MoU) signed with Iran to end the conflict was “over,” signalling that Washington was no longer interested in pursuing diplomacy with Tehran.

KSE-100 Index had dropped 6,463.38 points, or 3.47%, to 179,792.17, wiping out a significant portion of recent gains soon after announcement but later moves up to 181,700.

The sharp downturn came a day after the market had already closed lower. On Tuesday, the benchmark index shed 1,199.14 points, or 0.64%, to settle at 186,255.55 as investors opted to book profits after the KSE-100 Index hovered near its all-time high during intraday trading. However, optimism surrounding stronger corporate earnings for the upcoming results season had helped contain losses.

Global markets were also shaken as Washington intensified pressure on Tehran. The US carried out another wave of military strikes on Iran on Tuesday and revoked a licence that had allowed the country to sell crude oil.

The escalating conflict also sent global energy markets sharply higher, with crude oil prices surging amid fears of supply disruptions in the Middle East. WTI crude rose 4.41% to $74.85 a barrel, while Brent crude climbed 4.76% to $78.92. Murban crude posted the biggest gain, rising 5.04% to $74.01. Energy prices also strengthened, with US natural gas increasing to 3.334 and gasoline advancing to 3.022, reflecting heightened concerns over global fuel supplies.