PSX slides over 1,400 points as global oil shock, Mideast tensions trigger selling

Bears dominated the trading floor of the Pakistan Stock Exchange on Thursday, with the benchmark index shedding over 1,400 points as investors reacted to rising geopolitical tensions in the Middle East and volatility in global energy markets.

According to the PSX website, the KSE-100 Index closed at 154,421.43 points, declining by 1,437.04 points, or 0.92%, reflecting selling pressure across the market. The decline followed a negative session a day earlier when the index had slipped by 318.64 points, or 0.20%, to close at 155,858.48 points as investors adopted a cautious stance.

The market movement came amid developments in Pakistan’s ongoing discussions with the International Monetary Fund. IMF mission chief Iva Petrova said on Wednesday that Pakistan and the Fund had made “considerable progress” in talks on the third review of the Extended Fund Facility programme, adding that negotiations would continue in the coming days to further assess the impact of recent global developments on the economy.

Global markets also recorded losses as concerns over disruptions in oil supplies intensified. Reports of attacks on vessels in the Strait of Hormuz and in Iraqi waters pushed crude prices sharply higher. In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.8%, while Japan’s Nikkei fell 1.6%.

Futures for major US indices also declined, with both S&P 500 and Nasdaq futures falling 0.8%. In Europe, EUROSTOXX 50 futures slipped 0.6%, while DAX futures dropped 0.8%.

US crude rose 7.5% to $93.80 per barrel, extending gains recorded in the previous session. Brent crude increased 7.7% to $99.03 per barrel.

The surge in oil prices occurred despite plans by the International Energy Agency to release 400 million barrels of oil from strategic reserves, the largest release in the agency’s history. The United States is expected to contribute 172 million barrels to the coordinated supply plan beginning next week.

According to Iraqi security officials, two fuel tankers in Iraqi waters were struck by explosive-laden boats early Thursday, while an Iraqi official said oil ports had halted operations.

Earlier reports indicated that several vessels had also been targeted in Gulf waters after Iranian forces warned ships operating in the region.