PSX declines as US-Iran tensions undermine investor confidence

2026-03-26 - 09:10

KARACHI – The shares at the Pakistan Stock Exchange (PSX) slipped on Thursday as renewed concerns over escalating tensions in the Middle East weighed on market sentiment, following Iran’s rejection of early peace overtures. The benchmark KSE-100 Index moved between a high of 157,591.23, down 722.21 points (0.47%), and a low of 155,373.13, down 2,940.31 points (1.86%), compared to Wednesday’s close of 158,313.44. Global oil prices stabilized slightly, with Brent crude trading above $100 and WTI near $90 per barrel. Nevertheless, the near-shutdown of the Strait of Hormuz, which handles roughly 20% of the world’s oil and gas supply, remains a major source of uncertainty. Asian stock markets showed mixed trends after a two-day rally, with declines seen in Tokyo, Hong Kong, Shanghai, Seoul, Manila, and Jakarta, while Singapore, Taipei, and Wellington posted gains. Sydney’s index remained unchanged. Earlier in the week, the market had received a boost after US President Donald Trump stepped back from threats to target Iran’s energy infrastructure and indicated that peace talks were underway. The US proposed a 15-point plan to end the conflict, while Iranian officials reportedly outlined five conditions for a ceasefire. Despite warnings from Trump, including a statement that he could “unleash hell” if Iran refused an agreement, Iranian Foreign Minister Abbas Araghchi emphasized that Tehran has no intention of engaging in direct negotiations at this time. On Wednesday, the KSE-100 had surged by 4,347.08 points, or 2.82%, closing at 158,313.44, with an intraday high of 158,586.09 and a low of 155,199.71. Pakistan mulls quota-based petrol allocation through digital system