KARACHI: The Pakistan Stock Exchange (PSX) registered a sharp decline on Monday as investors anxiously waited to see if Iran would retaliate against US’ weekend attacks on its nuclear sites, with resulting risks to global activity and inflation.
The KSE-100 plunged 3,496.04 points to drop to 116,527.19 points during intraday trading amid rising uncertainty in the Middle East.
On Friday, the benchmark witnessed a bullish trend when it gained 20.65 points, a positive change of 0.02 percent, and closed at 120,023.24 points.
Meanwhile, oil prices jumped on Monday to their highest since January as the United States’ weekend move to join Israel in attacking Iran’s nuclear facilities stoked supply concerns.
Brent crude futures were up $1.52 or 1.97% to $78.53 a barrel as of 0503 GMT. U.S. West Texas Intermediate crude advanced $1.51 or 2.04% to $75.35.
Both contracts jumped by more than 3% earlier in the session to $81.40 and $78.40, respectively, touching five-month highs before giving up some gains.
The rise in prices came after U.S. President Donald Trump said he had “obliterated” Iran’s main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself.
Iran is OPEC’s third-largest crude producer.
Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows.
