PSX suffers massive losses as KSE-100 drops over 15,000 points amid geopolitical tensions

2026-03-02 - 04:43

KARACHI – The Pakistan Stock Exchange (PSX) kicked off the new business week with significant losses as escalating geopolitical tensions weighed heavily on investor sentiment. The market plunged sharply after the US and Israel launched airstrikes on Iran, resulting in the assassination of Iran’s Supreme Leader, Ayatollah Ali Khamenei. This dramatic development sent shockwaves through regional markets, sparking uncertainty and driving the KSE-100 index down by 15,071.01 points to reach 152,991.15 points, a steep drop of 8.97% from the previous close of 168,062.16 points. The trading session was temporarily halted as investors rushed to minimize risk, fearing further instability in the region. Analysts highlighted that the sharp decline reflects growing concerns over the potential fallout from this escalation, which could lead to prolonged economic uncertainty. The said the geopolitical risks in the Middle East are significantly impacting market confidence, and it could take time for investors to reinvest in the market. Meanwhile, oil prices recorded an increase of 7% on Monday, reaching their highest levels in months, as tensions in the Middle East heighted following the US-Israel attack on Iran. Brent crude futures soared to $82.37 per barrel, marking the highest price since January 2025. By 0054 GMT, Brent was trading at $78.24, up by $5.37, or 7.37%. Similarly, U.S. West Texas Intermediate crude climbed $4.66, or 6.95%, to $71.68, briefly hitting $75.33, the highest since June 2025.