KSE-100 drops as rising oil prices spark investor concerns
Why this matters: local context for readers following news across Pakistan and the region.
KARACHI – The Pakistan Stock Exchange (PSX) came under pressure on Monday as rising tensions in the Middle East pushed global oil prices higher, deepening concerns over Pakistan’s external account, inflation outlook, and uncertainty ahead of the upcoming budget. The benchmark KSE-100 Index experienced sharp intraday volatility, reaching a high of 169,360.54 points—down 1,118.40 points or 0.66%—while touching a low of 168,432.45 points, reflecting a decline of 2,046.49 points or 1.2% compared to the previous close of 170,478.94. Market analysts said the downturn was driven by escalating geopolitical tensions and their potential impact on global energy prices. PSX performance was impacted due to Iran-related escalation and worsening Middle East conditions, said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities. He added that pre-budget uncertainty, expectations of rising global crude oil prices, pressure on Pakistan’s external balance, and speculation about possible interest rate adjustments contributed to selling activity at the bourse. International oil markets surged on Monday, with Brent crude climbing more than $3 per barrel after renewed strikes in the Middle East and reports of explosions in parts of Iran heightened fears of broader conflict. Reports from regional media indicated blasts in Tehran, Tabriz, and Isfahan early in the day, raising concerns over further escalation and its potential impact on oil supply routes, including the Strait of Hormuz. Brent crude futures rose by $3.20, or 3.39%, to $96.24 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $2.87, or 3.17%, to reach $93.41 per barrel. The sharp increase erased losses from the previous trading session, when prices had declined on expectations of de-escalation in the U.S.–Iran situation. Since March, oil prices have reportedly surged by more than 50% amid ongoing geopolitical risks. On Sunday, Iran launched missile strikes on Israeli targets in response to ear