KARACHI – The Pakistan Stock Exchange (PSX) extended its decline for the second consecutive trading session this week as investor sentiment remained under pressure following the United States’ announcement to reinstate a naval blockade against Iran.
The development triggered concerns over regional instability, prompting increased selling activity in the market.
During early intraday trading, the KSE-100 shed 5,291.97 points to drop to 174,635 points, reflecting a negative change of 2.94 percent compared to previous close of 179,927.
Meanwhile, Asian equities declined on Tuesday, while oil prices climbed to their highest level in a month as investors assessed rising geopolitical risks. After a volatile opening, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.7%, dragged lower by losses in Taiwan and South Korea. Taiwan’s benchmark index and South Korea’s market dropped more than 3% and 5%, respectively, at their session lows. Japan’s Nikkei 225 also slipped 0.8%, while S&P 500 futures edged down 0.3%, signaling cautious sentiment among global investors.
On the other hand, il prices climbed to their highest level in nearly a month on Tuesday, driven by escalating tensions in the Middle East after the United States announced reinstating a naval blockade targeting Iran and both sides intensified military activity around the Strait of Hormuz.
The developments raised fresh concerns over potential disruptions to global oil supplies.
International benchmark Brent crude gained $1.50, or 1.8%, to trade at $84.80 per barrel by 0330 GMT.
Meanwhile, U.S. West Texas Intermediate (WTI) crude advanced $1.70, or 2.2%, reaching*$79.84 per barrel.
Earlier, United States President Donald Trump announced the reinstatement of a blockade on Iran and imposed charges on vessels for safe passage through the Strait of Hormuz.
In a post on Truth Social, Trump said the United States would assume the role of “THE GUARDIAN OF THE HORMUZ STRAIT.”
He added that, in the interest of what he described as fairness, the US would seek reimbursement equivalent to 20% of the value of all cargo transported through the strait to cover the costs of maintaining safety and security in the volatile maritime corridor. Trump said the process of implementing the plan would begin immediately.
