PSX plunges after US-Iran talks collapse

KARACHI: (Web Desk) – Heavy selling hit the Pakistan Stock Exchange on Monday after diplomatic efforts between the United States and Iran collapsed in Islamabad, shaking investor confidence.

The benchmark KSE-100 Index dropped sharply by over 5,000 points within minutes of opening, reflecting panic across the market. By 10:05am, the index stood at 162,170.21, marking a decline of 3.10%.

Losses were seen across major sectors, including automobiles, cement, banking, and energy. Key stocks such as ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI all traded lower, dragging the index down.

The market downturn followed rising global uncertainty after Donald Trump announced a blockade targeting Iranian ports, intensifying concerns over energy supply disruptions in the Middle East.

PSX drops 293 points as KSE-100 Index hovers near 165,517

Internationally, oil prices surged while equity markets weakened. Brent crude jumped to around $103 per barrel, and the US dollar strengthened, reflecting investor demand for safer assets. Meanwhile, S&P 500 futures fell, signaling a cautious start for US markets.

Asian markets also declined, though losses were relatively contained. Japan’s Nikkei, South Korea’s KOSPI, and Australia’s ASX 200 all posted modest drops as investors remained cautious, awaiting clarity on the geopolitical situation.

The failure of prolonged negotiations in Islamabad left the fragile ceasefire in doubt. Reports suggest the US is considering further actions, including possible limited strikes, although no immediate escalation has been confirmed.

Overall, the uncertainty surrounding Middle East tensions and global oil supply continues to weigh heavily on financial markets, including Pakistan’s equities.