The Pakistan Stock Exchange (PSX) started the new business week in negative territory as rising geopolitical tensions weighed on investor sentiment. Increased selling pressure pushed the benchmark index sharply lower during early trading.
The KSE-100 Index lost more than 2,000 points after investors reacted to the latest developments involving the United States and Iran. The decline reflected growing concerns over regional instability and its possible impact on global markets.
During the session, the benchmark index fell by 2,202.63 points. It dropped to 180,039.14 points from the previous closing level of 182,241.77 points. The fall of over 2,000 points marked one of the biggest declines seen in recent trading sessions.
Market participants remained cautious as tensions continued to rise in the Middle East. Investors closely monitored developments involving military action between the US and Iran, which added uncertainty to financial markets.
The latest escalation follows continued exchanges of strikes between the two countries. The conflict is linked to growing tensions around the Strait of Hormuz, one of the world’s most important maritime trade routes.
According to an official statement, the US Central Command (CENTCOM) carried out a fresh wave of military operations on July 12. The strikes targeted several Iranian military sites across different locations.
CENTCOM said its forces used precision-guided weapons to hit Iranian air defense systems, coastal radar facilities, missile launch capabilities, drone infrastructure, and small military boats. Fighter aircraft, naval vessels, attack drones, and sea drones were involved in the operation.
The US military stated that the objective was to weaken Iran’s ability to threaten international shipping passing through the Strait of Hormuz. It also stressed that US forces remain ready to protect freedom of navigation in the region despite continued tensions.
The Strait of Hormuz remains one of the most important waterways for global energy supplies and international trade. Any disruption in the area often creates uncertainty in financial markets worldwide.
Iran also responded to the latest developments. The Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for targeting US military bases in Kuwait, Jordan, and Bahrain.
Meanwhile, Bahrain activated missile warning sirens for the second time after Iran launched retaliatory strikes. The developments have further increased concerns about the possibility of wider regional conflict.
Adding to the uncertainty, Iranian Parliament Speaker Mohammad Baqer Ghalibaf warned that the United States must honor its commitments under the agreement aimed at ending recent hostilities. He cautioned that failure to do so could bring further consequences.
The sharp decline of more than 2,000 points at the PSX highlights how global geopolitical events continue to influence investor confidence. Market analysts believe investors may remain cautious until there is greater clarity over the evolving situation in the Middle East.
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