The benchmark KSE-100 Index dropped over 400 points during the early trading hours on Wednesday, reaching 121,561.23 by 9:45am, a decrease of 409.81 points or 0.34%.

The Pakistan Stock Exchange (PSX) closed with a bearish trend on Tuesday, as the KSE-100 Index fell by 254.32 points, or 0.21%, settling at 121,971.04 points, amid a session marked by declining stocks.

Oil prices rose on Wednesday, with Brent crude futures increasing by 0.33% to $76.70 per barrel and U.S. crude climbing 0.45% to $75.18 per barrel, both having surged more than 4% in the previous session.

The overall risk-off sentiment in global markets persisted, with MSCI’s index of Asia-Pacific shares outside Japan declining by 0.26%, and EUROSTOXX 50 futures dropping by 0.4%.

U.S. stock futures remained mostly unchanged after Wall Street closed in the red overnight.

In the currency markets, the dollar strengthened to a one-week high of 145.445 yen, retaining most of its gains against other currencies. The euro struggled to bounce back from a 0.7% decline on Tuesday, trading at $1.1487.

Key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries, experienced significant selling pressure. Major stocks like HUBCO, PSO, MARI, OGDC, POL, PPL, MCB, MEBL, and NBP were all trading in the negative.

Globally, markets were influenced by concerns over escalating tensions in the Middle East, which drove oil prices higher and prompted investors to seek refuge in US Treasuries and the dollar while selling off stocks.

There is a growing anxiety about the possibility of direct US military involvement as the Israel-Iran air conflict continues into its sixth day, coinciding with President Donald Trump’s call for Iran’s unconditional surrender and a warning that U.S. patience is running thin.