The Pakistan Stock Exchange (PSX) extended its losses for a second consecutive session on Tuesday, with the benchmark KSE-100 index shedding over 3,000 points during early trade. The index plummeted to 176,462.15 points, marking a sharp decline from the previous close of 179,927.04.
The downward trajectory stems from mounting instability in global energy markets. Oil prices surged nearly three percent to reach a four-week high on Tuesday, driven by the US reimposing a naval blockade on Iran.
As both nations increase their military activity in the Strait of Hormuz, global uncertainty regarding energy supplies has intensified. Brent crude futures reached $84.80 per barrel, while US West Texas Intermediate rose to $79.84, hitting levels not seen since the June 17 Islamabad Memorandum of Understanding (MoU).
Awais Ashraf, director of research at AKD Securities, noted that the market’s reaction is a direct response to the renewed blockade. “The decline is broad-based, with cyclical sectors witnessing the sharpest percentage losses amid heightened uncertainty over the medium-term outlook due to the emerging geopolitical situation,” he stated.
Investor sentiment had already soured on Monday as tensions in the Strait of Hormuz dragged the benchmark index below the psychological threshold of 180,000 points. The market struggled throughout that session, eventually closing down 2,314 points.
