Stockbrokers react while monitoring share prices at the Pakistan Stock Exchange (PSX) in Karachi on March 2, 2026. — AFPThe Pakistan's stock market shed around 1,000 points on Tuesday, as escalating geopolitical tensions linked to the Middle East conflict dampened investor sentiment.
The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) settled at 172,642.16, down 993.91 points, or 0.57%, from the previous day's closing of 173,636.07.
The market remained under pressure throughout the session, touching an intraday high of 173,736.19 points and a low of 171,490.63 points.
AAH Soomro, an independent investment and economic analyst, attributed negative sentiments to the rising energy prices amid escalation between Iran and the United States along with Houthis' attack on Saudi Arabia's energy assets.
"Oil at $100 is keeping a lot of people unexcited and keeping fresh money away," he added.
Ismail Iqbal Securities Chief Executive Officer Ahfaz Mustafa said the market remained largely lacklustre, with elevated oil prices raising concerns among investors.
"With volumes substantially lower than usual, the market remains directionless," he added.
Yemen's Houthis attacked four cities in the south of Saudi Arabia on Tuesday, wounding more than 70 people and setting oil installations ablaze in what appeared to be a major expansion of the six-month-old Middle East war.
The Houthis said they had launched a broad operation deep into Saudi territory. They used drones and missiles to strike a Saudi airbase in the southern city of Khamis Mushair, and targets belonging to Saudi Arabia's state oil company in nearby Abha, Najran on the Yemeni border and Jazan, a major Red Sea port.
After a month of calm in August, fighting in the Gulf has resumed, with Iran and the US exchanging fire, sending global oil prices back up to levels unseen since July. Brent crude prices were up more than 2% on Tuesday, above $99 a barrel.