KARACHI — Pakistan’s stock market took a sharp hit on Monday as growing fears over the worsening conflict between Iran and the United States sent shockwaves through global energy markets and rattled investor nerves.
The benchmark KSE-100 Index plunged by 3,855 points — dropping 3.21% to close at 116,167.47 — wiping out Friday’s modest gains and marking one of its steepest single-day losses this year.
“Investors are nervous because the standoff between Iran and Israel is pushing oil prices up fast — more than 25% from recent lows,” explained Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “This naturally stirs up fears about inflation and economic strain, so people are rethinking their positions.”
The day began with some cautious buying that lifted the index to an intraday high of 118,798.51, but the rally fizzled out as fresh reports of US airstrikes deep inside Iran rekindled selling pressure. By mid-session, the index sank to a low of 117,977.81 before settling lower still.
Oil prices surged in Asian markets early Monday, fueled by concerns that the weekend’s US bombing campaign against Iran’s nuclear sites could lead to supply disruptions in the region. US President Donald Trump called the strikes “a spectacular success,” boasting that B-2 stealth bombers took out key nuclear facilities at Fordow, Natanz, and Isfahan.
Iran, which pumps out about 3.3 million barrels of oil daily, sends nearly half of that abroad. Analysts warn that any Iranian retaliation could include closing the Strait of Hormuz — a narrow but vital passage that handles about 20% of the world’s oil trade. Iranian lawmakers have signaled support for such a move, with a final decision expected from the country’s top security council.
Last Friday, the KSE-100 Index had barely budged, eking out a tiny gain of just over 20 points. But Monday’s plunge erased optimism, leaving traders bracing for more turbulence if the geopolitical crisis drags on.
