The Pakistan Stock Exchange (PSX) fell sharply on Monday, with the benchmark KSE-100 index plunging more than 16,000 points as escalating tensions between Iran, Israel and the United States sparked heavy selling across the market. Trading was suspended for one hour after the index dropped 15,071 points, or 8.97 percent, breaching the exchange’s circuit breaker threshold.

By the close of trading, the KSE-100 index had declined 16,089.17 points, or 9.57 percent, to settle at 151,972.99, compared with the previous close of 168,062.16. The steep fall reflects investor concerns over regional instability and its potential impact on Pakistan’s economy and financial markets.

During intraday trade, the market showed brief signs of recovery, gaining 2,944.26 points at one stage to reach 155,935.41. However, selling pressure persisted and the index remained in negative territory for the remainder of the session.

Oil prices surge amid Middle East escalation

The market downturn coincided with a sharp rise in global oil prices. Brent crude increased by about 10 percent to around $80 per barrel in over-the-counter trading on Sunday, according to traders, following U.S. and Israeli strikes on Iran.

Brent had already climbed to $73 per barrel on Friday, its highest level since July, amid growing concern over potential military escalation in the Middle East. Futures markets were closed over the weekend.

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Rising oil prices and geopolitical uncertainty often weigh on emerging markets such as Pakistan, increasing concerns over inflation, trade balances and fiscal pressures. Monday’s sell-off underscores the sensitivity of local equities to global developments.