Oil price spikes on Trump’s “hell for Iran” threat, Strait of Hormuz tensions deepen selling pressure
KARACHI:
War-driven uncertainty kept the Pakistan Stock Exchange (PSX) under sustained pressure during Monday’s morning session, as trading opened in a tense environment. By 11:34am, the index had fallen to 148,027.32, down 2,371.39 points (1.58%) from the previous close of 150,398.71.
So far in the session, the market touched a high of 151,453.80 and a low of 147,882.03. Trading volume reached 78,091,453 shares, while total value stood at 7,158,008,761. The continued slide reflected persistent selling, with cautious sentiment dominating early trading.
The impact weighed heavily on investors, as escalating geopolitical tensions rattled sentiment following US President Donald Trump threat of “hell” if Iran keeps the Strait of Hormuz shut, sharply raising the stakes in the conflict and triggering fresh fears across global markets.
The tension spilled directly into oil markets, with prices surging on fears of supply disruption through the critical route that handles a significant share of global energy flows. The spike in crude further compounded pressure on equities, reinforcing the selling momentum seen on the PSX during morning trade.
Read: PSX ends in red amid oil shock
“Investors are cautious about the conflict between the US, Israel, and Iran, which has caused oil prices to surge to record highs and Gulf trading to halt due to the Strait of Hormuz closure,” said AKD Securities Director Research Mohammed Awais Ashraf.
United Bank Limited accounted for the majority of points lost in today’s trading due to its higher surplus on revaluation of assets, which is at risk following the recent hike in secondary market yields, Ashraf added.
The KSE-100 index remained under selling pressure, standing at 147,950.50, down 2,448.21 points, or 1.63%, as of 12:04pm, with trading underway at the time of filing this report.
