PSX falls over 2,700 points as US-Iran tensions drive oil prices higher

The Pakistan Stock Exchange (PSX) came under pressure on Monday as renewed tensions between the United States and Iran, along with Tehran’s claim that it had again closed the Strait of Hormuz, pushed oil prices higher and weighed on investor sentiment.

According to the PSX website, the benchmark KSE-100 Index opened sharply lower and fell to a low of 179,448.52, down more than 2,700 points in the opening minutes of trading.

The market recovered some ground later in the session, but selling pressure remained. At 1:20 pm, the index stood at 180,540.96, down 1,700.81 points, or 0.93%, from the previous close.

Losses were recorded across automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation.

The decline followed a weaker performance in the previous week, when renewed US-Iran military strikes ended the market’s winning streak and triggered widespread selling. The KSE-100 Index fell 1.7% on a week-on-week basis, losing 3,130.43 points to close at 182,241.77.

Global stocks fell and government bond yields rose on Monday as investors grappled with concerns over ​a fresh escalation in the Middle East conflict and valuations in AI-related stocks.

MSCI's main world stocks index fell 0.38%. Europe's STOXX 600 was down 0.12%, with tech stocks falling 1.1%.

Nasdaq futures dropped 1.20% and S&P 500 futures were down 0.40%. Japan's Nikkei fell 1.9%.

South Korea's formerly red-hot KOSPI sank 7.6%, having already lost almost 8% last week, as leveraged bets on semiconductor ​shares came under pressure. The market has emerged as a key global barometer for chip-sector sentiment and further losses could ripple out more broadly.

South Korean chipmaker SK Hynix's U.S.-listed shares jumped ​almost 14% in their Nasdaq debut on Friday.

Chip giant Taiwan Semiconductor Manufacturing Co. reports results on Thursday and another record profit is expected.

Oil prices surged more than ‌3% on Monday after renewed military strikes between the United States and Iran reignited concerns over energy shipments through the Strait of Hormuz.

Brent crude futures were up $2.67, or 3.51%, to $78.68 at 0743 GMT, while U.S. West Texas Intermediate crude was up $2.48, or ​3.47%, to $73.89 a barrel.