KSE-100 Drops 1,500 Points as US-Iran Tensions Escalate
The KSE-100 index shed nearly 1,500 points on Friday as escalating tensions between the United States and Iran rattled investor sentiment across global and regional markets. The sharp intraday decline reflected widespread risk aversion as geopolitical uncertainty intensified.
The sell-off was broad-based, with energy, banking, and cement sectors among the hardest hit. Analysts attributed the decline primarily to external factors, noting that Pakistan's bourse is particularly sensitive to oil price movements and regional conflict dynamics.
Rising tensions in the Gulf region have pushed crude oil prices higher, adding inflationary pressure concerns for Pakistan's import-dependent economy. Investors moved to reduce exposure across equities as the outlook for regional stability deteriorated.
Market participants are closely watching developments in the US-Iran standoff for further guidance. A sustained escalation could deepen the sell-off and compound existing pressure on Pakistan's external account, analysts warned.
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