The Pakistan Stock Exchange (PSX) faced a dramatic downturn on June 23, as escalating geopolitical tensions between the United States and Iran spurred widespread selling among investors.

The KSE-100 index plummeted nearly 1,600 points during the trading session, reflecting growing concerns over the potential implications of the US attack on Iranian nuclear sites.

As trading commenced, the benchmark index opened at approximately 118,452.12 points, marking a sharp decline of over 1,300 points within the first few minutes.

Last week, the KSE-100 index ended at 120,023.23 points, representing a 1.7% decline compared to the previous week’s closing of 122,143.57.

This latest plunge follows a tumultuous week for the PSX, during which investor sentiment was already rattled by a combination of rising geopolitical tensions, fluctuating international commodity prices, and mixed signals from domestic economic indicators.

Internationally, markets reacted similarly, with shares slipping across Asia on the same day. Oil prices surged to five-month highs as investors anxiously awaited any potential retaliation from Iran, raising concerns about global economic activity and inflation.

While oil prices increased by approximately 2.8%, they retreated slightly from initial peaks.

Market analysts expressed cautious optimism that Iran might choose to de-escalate tensions, particularly following recent developments regarding its nuclear ambitions.

However, the situation remains fluid, with many investors closely monitoring access through the Strait of Hormuz, a vital passage for global oil trade.

Overall, the PSX’s sharp decline underscores the significant impact of geopolitical events on market dynamics, prompting investors to reassess their positions in light of heightened uncertainties.