KSE-100 Index witnessed a sharp decline on Thursday as rising global oil prices and escalating geopolitical tensions in the Middle East weighed heavily on investor sentiment.
During intraday trading, the KSE fell by 4,346.91 points, reaching 161,476.96 points. This marked a drop of 2.62 percent compared to the previous closing level of 165,823.87 points, reflecting strong selling pressure across the market.
Analysts said the downturn was mainly driven by fears that continued instability in the Middle East could push international crude oil prices even higher. Investors are concerned that rising oil costs may fuel inflation in Pakistan and negatively impact corporate earnings in the coming months.
The surge in global crude prices is also expected to increase transportation and production expenses, affecting profitability in multiple industries including manufacturing, energy, and logistics. As a result, trading activity remained cautious, with lower volumes indicating uncertainty among investors.
Market sentiment further weakened after U.S. President Donald Trump announced the continuation of a naval blockade against Iran. This development triggered a sharp rally in global oil markets.
Brent crude jumped more than 8 percent to around $124 per barrel, while U.S. crude rose about 7 percent to $108 per barrel, reaching multi-year highs.
Overall, the pressure on KSE reflects growing concerns over global energy prices and geopolitical risks, both of which continue to influence investor confidence and market stability in Pakistan.
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