PSX Starts New Week Lower As Uncertainty Over US-Iran Ceasefire Grows
- KSE-100 Index dropped more than 855 points in the opening session on Monday.
- Rising Middle East tensions dampened investor sentiment at the Pakistan Stock Exchange.
- Global oil prices surged over 2% amid uncertainty surrounding a US-Iran ceasefire extension.
The Pakistan Stock Exchange (PSX) started the new business week on a bearish note as investors reacted to escalating tensions in the Middle East and growing uncertainty over a potential extension of the ceasefire arrangement between the United States and Iran.
During early trading on Monday, the benchmark KSE-100 Index declined by 855.34 points, or 0.49 percent, to reach 173,107.47 points. The drop came after the index had closed at 173,962.81 points in the previous session.
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Market sentiment remained under pressure as geopolitical concerns resurfaced in the region. Investors closely monitored developments involving Iran, the United States, Israel, and Hezbollah, which contributed to a cautious trading environment.
The decline in the local stock market coincided with a sharp increase in international oil prices. Crude prices moved higher after reports of renewed military exchanges between the United States and Iran, while Israel reportedly ordered additional troop movements deeper into Lebanon amid ongoing clashes with the Iran-backed Hezbollah group.
U.S. crude futures climbed by $2.29, or 2.62 percent, to $89.65 per barrel during early trading. Brent crude futures also advanced by $2.05, or 2.25 percent, reaching $93.17 per barrel.
The latest escalation in regional tensions weakened market expectations that Washington and Tehran would soon announce an extension of their ceasefire agreement. Optimism surrounding a possible deal had previously helped oil prices settle lower at the end of last week.
Analysts believe that continued uncertainty in the Middle East could keep financial markets volatile, with investors expected to closely track geopolitical developments and their impact on global energy prices in the coming days.
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