Stocks at the Pakistan Stock Exchange (PSX) fell sharply on Thursday as a fresh surge in global oil prices, driven by escalating attacks on Gulf energy infrastructure, revived inflation concerns and triggered a wave of profit-taking.
Market Plunge Amid Geopolitical Turmoil
The benchmark KSE-100 Index registered an intraday low of 150,728.17, falling 3,564.08 points, or 2.3%, from the previous close of 154,292.25. The index traded between a high of 152,698.51 and that low, reflecting sustained selling pressure throughout the session.
“PSX is under pressure today due to increased oil prices caused by the Middle East conflict. The latest attacks on the LNG field in Qatar caused oil to spike 5%, which is creating selling pressure in the market,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “Expected fuel price hike, and deteriorating macros, are also weighing in on the negative sentiment.”
Direct Hits on Critical Energy Infrastructure
The sell-off was triggered by direct attacks on major energy hubs. QatarEnergy reported “extensive damage” to its main gas hub at Ras Laffan Industrial City after two waves of Iranian strikes. Missile attacks damaged a gas-to-liquids facility and sparked sizable fires at several liquefied natural gas (LNG) facilities. Qatar’s defence ministry stated the hub was hit by ballistic missiles from Iran.
In response, US President Donald Trump warned Iran against further strikes and threatened to destroy Iran’s South Pars gas field if attacks continue. The South Pars/North Dome field, shared by Iran and Qatar, is the world’s largest known gas reserve.
Supply risks extended to Saudi Arabia, where the Ras Tanura refinery complex—one of the largest in the Middle East—has been repeatedly targeted during the conflict, including an early drone strike that caused a fire and partial shutdown.
Oil Markets and Regional Output in Focus
The immediate market impact was a surge of more than 5% in oil prices, with Brent crude spiking above $112 a barrel. The International Energy Agency noted Gulf output of oil and oil products has fallen significantly, from 30 million barrels per day last year to 20 million currently.
This downturn follows a strong previous session where the KSE-100 had surged over 4,276 points, highlighting the market’s acute sensitivity to regional energy shocks.
The confluence of direct infrastructure damage, heightened geopolitical rhetoric, and tangible supply disruptions has created a perfect storm, pressuring emerging markets like Pakistan that are vulnerable to imported energy inflation.
