PSX plunges over 5,200 points as US-Iran tensions, rising oil prices trigger heavy sell-off

The Pakistan Stock Exchange (PSX) came under intense selling pressure on Tuesday as escalating US-Iran hostilities, surging oil prices and President Donald Trump’s decision to reinstate a blockade on Iranian shipping, along with a proposed 20% fee on cargo passing through the Strait of Hormuz, deepened investor concerns over regional stability and energy supplies.

According to the PSX website, the benchmark KSE-100 Index lost more than 3,000 points in the opening minutes of trade. Selling intensified later in the session, pushing the index to an intraday low of 174,615.03, more than 5,200 points below the previous close.

By 12:15 pm, the index was hovering at 174,949.86, down 4,977.18 points, or 2.77%.

The sell-off at the PSX was broad-based, with automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation stocks trading lower.

The pressure followed a third consecutive night of US military strikes on Iran after President Donald Trump said Washington was reinstating its blockade of Iranian shipping.

The United Arab Emirates said at least two tankers came under Iranian fire in the Strait of Hormuz, while Tehran maintained that it had the right to control the key waterway.

Trump had earlier said the United States would ensure that the strait remained open and proposed charging a 20% fee for passage.

Bahrain and Jordan also said they intercepted fresh Iranian attacks on Tuesday as Tehran continued missile and drone strikes across the Gulf.

The latest decline followed Monday’s weaker session, when concerns over regional stability pushed the KSE-100 Index below the 180,000-point level. On Monday, the benchmark closed at 179,927.05 points, down 2,314.73 points, or 1.27%.

Global stocks yo-yoed between gains and losses and ​oil hit a one-month high in Asian trading on Tuesday after President Donald Trump said the U.S. was reinstating its blockade of Iranian shipping and ‌ would collect a 20% fee on cargo traversing the Strait of Hormuz.

Following a volatile session, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%, as a rebound for South Korean shares offset declines in Taiwan. S&P 500 e-mini futures nudged 0.1% higher.

Brent crude futures were last up $1.50, or 1.8%, to $84.80 per barrel at 0330 GMT, while U.S. West Texas Intermediate crude rose $1.70, ​or 2.2%, to $79.84 a barrel.