KARACHI — The Pakistan Stock Exchange (PSX) commenced the trading week with a heavy sell-off, as intensifying geopolitical friction in the Middle East sent shockwaves through investor sentiment. The benchmark KSE-100 index plummeted by 1,522.46 points during early trading on Monday, dragging the market down to 174,280.32 points.
The decline represents a negative swing of 0.87 percent compared to the previous week’s close of 175,802.78 points. The bearish momentum was fueled by a broader risk-off mood gripping Asian markets, where escalating military activity in the Gulf region triggered a sharp spike in global crude oil prices.
Regional Conflict Spooks Global Markets
The market downturn mirrored a slip in Asian share markets as the conflict deepened. The inflationary fears tied to rising energy costs combined with a critical week of earnings reports from major technology firms to test the resilience of the artificial intelligence trade.
Oil prices surged dramatically, with Brent crude breaking through the $90-a-barrel threshold for the first time in over a month. The price increase followed the U.S. military initiating a ninth consecutive day of strikes against Iran, which retaliated with attacks across the region. The strategic Strait of Hormuz saw minimal traffic on Sunday, with reports confirming one vessel was ablaze, further constricting supply outlooks.
Crude Oil Prices Spike
The energy market reacted instantly to the heightened supply risks. Key benchmarks recorded significant gains:
- Brent crude futures climbed 2.6 percent to settle at $90.40 per barrel.
- U.S. crude oil prices rose 2.3 percent to hit $84.39 per barrel.
The sudden increase in oil costs is expected to place additional pressure on Pakistan’s import bill and inflation trajectory, contributing to the negative outlook on the trading floor. Market analysts suggest that without a de-escalation in the Gulf, the volatility is likely to persist across frontier and emerging markets.
