The Pakistan Stock Exchange (PSX) faced a major setback on Monday as it dropped by more than 2,000 points in a single trading session.
The sudden decline came after news broke of US airstrikes targeting nuclear facilities in Iran, a move that has raised serious concerns about the worsening Iran-Israel conflict.
This sharp fall shook investor confidence across the board. Many investors quickly sold their shares to avoid potential losses, leading to a wave of panic in the market.
Experts believe the steep decline is mainly due to fears that the rising tensions in the Middle East could affect oil prices, trade routes, and regional stability all of which directly or indirectly impact Pakistan’s fragile economy.
As oil is a major import for Pakistan, any disruption in the region could raise global oil prices, increasing costs at home. This, in turn, would push inflation higher and put more pressure on people already struggling with the rising cost of living.
Financial analysts say that such geopolitical events often cause temporary market shocks, but their long-term impact depends on how the situation unfolds. If the conflict intensifies, global markets — including Pakistan’s could face more instability.
Investors are now hoping for diplomatic efforts to calm the region. In the meantime, financial advisors are urging people to avoid rash decisions and wait for the situation to become clearer. The PSX management is monitoring the developments closely and may take steps to help stabilize the market if needed.
