Pakistan-India Tensions Trigger Sharp Decline in Stock Markets; Global Oil Prices Rise

KARACHI: Escalating tensions between Pakistan and India have sent shockwaves through regional financial markets, leading to sharp declines in both the Pakistan Stock Exchange (PSX) and India’s Bombay Stock Exchange (BSE).

Following India’s overnight missile strikes on Pakistan and Islamabad’s swift military response, market sentiment took a severe hit as trading opened on Wednesday.

In India, the BSE experienced a turbulent start to the day, with the Sensex dropping by over 1%, falling below the 80,000-point mark—its worst opening in recent weeks.

Pakistan’s stock market also saw a significant downturn. The KSE-100 Index plunged by 3,282 points, trading at 110,285 amid investor concerns over the potential for prolonged conflict and its economic fallout.

Meanwhile, global energy markets reacted to the South Asian military escalation. Brent crude oil rose by 1%, trading at $62.52 per barrel, while West Texas Intermediate (WTI) crude climbed to $59.54. Natural gas prices also surged by 2%, with rates reaching $3.55 per MMBtu.

Read more: PSX Down Over 2,500 Points As News of Imminent Indian Attack Stirs Panic

Analysts warn that continued hostilities could further destabilize regional markets and fuel volatility in global commodities.