The failure of US-Iran talks has triggered panic across global financial markets. The Pakistan Stock Exchange (PSX) also came under heavy pressure.
The benchmark index dropped sharply by nearly 5000 points, reflecting strong investor fear and uncertainty. Market sentiment turned negative within hours of the diplomatic breakdown.
The KSE-100 Index fell steeply from its previous levels. At one point, it lost around 5,200 points before settling lower at 162,057.43. The sudden drop of 5000 points shocked investors across multiple sectors.
Key sectors were heavily impacted during the trading session. Automobiles, cement, banking, oil and gas exploration companies, OMCs, power producers, and refineries all faced strong selling pressure.
Analysts said investors rushed to secure safer positions. The phrase “cash is king” reflected the market mood as uncertainty increased. The sharp fall of 5000 points highlighted growing concerns over geopolitical tensions.
The trigger came after US Vice President JD Vance confirmed that negotiations with Iran had collapsed. Talks ended after 21 hours without any agreement. The breakdown added pressure on already fragile global markets.
Iran also responded strongly to the failed talks. Officials pointed to deep mistrust between both sides. They said expectations for a quick agreement were unrealistic given ongoing disagreements.
Earlier, optimism had driven the market upward. Just last week, the KSE-100 Index had gained 1,673.87 points, closing at 167,191.38. That rally was wiped out as the index lost 5000 points in a single session.
Investors had been hoping for a diplomatic breakthrough. Instead, the failure of negotiations reversed market sentiment sharply. The sudden swing showed how sensitive markets are to global political developments.
Experts warned that volatility may continue in the coming days. They said clarity on geopolitical tensions will be essential for market stability. Until then, pressure on stocks could remain strong after the 5000 points decline.
In other news read more about: PSX Ends Sharply Lower Amid Volatility and Selling Pressure
