KARACHI (April 13, 2026) — The Pakistan Stock Exchange (PSX) witnessed a turbulent session on Monday, with the benchmark KSE-100 index shedding over 3,500 points following U.S. President Donald Trump’s order to blockade Iranian ports. The move, which effectively shatters the optimism of last week’s ceasefire, triggered a massive sell-off across all major sectors.
KSE-100 falls 3.3% in early trade; oil surges 8% while global equities and futures decline
Read: https://t.co/IrukiMEriP pic.twitter.com/Jtxa4VjgBX
— Profit (@Profitpk) April 13, 2026
At a Glance: The Market Crash
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Intraday Low: The KSE-100 plunged by over 5,000 points in early trade, hitting a low of 161,638.07.
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The Catalyst: U.S. naval intervention in the Strait of Hormuz and the collapse of diplomatic certainty.
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Regional Friction: The IRGC has labeled the approach of military vessels a violation of the ceasefire, warning of a “harsh and decisive” response.
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Investor Sentiment: Deepening fears of a renewed regional war and its impact on global energy prices.
A Volatile Session
The trading day began with a sharp downward gap as investors reacted to the news from Washington and the subsequent threats from Tehran. At its worst point around 9:50 am, the index had lost nearly 3% of its value from the previous close of 167,191.37. Although the market saw a slight recovery toward the 163,000 level by midday, sentiment remains fragile as the “Islamabad Venue” talks appear to have failed.
The Strategic Chokepoint
The Strait of Hormuz remains the epicenter of the crisis. While the reopening of the strait was a core condition of the temporary ceasefire, the IRGC’s insistence on “full control” of traffic contradicts the U.S. mandate for an impartial blockade of Iranian ports. Analysts note that for an import-dependent economy like Pakistan, any disruption in this key shipping lane directly translates into heightened inflation and supply chain risks.
Markets open the week lower after US and Iran fail to reach peace deal and US Navy moves to block Iranian traffic through the Strait of Hormuz pic.twitter.com/fB3xokVi2S
— TRT World Now (@TRTWorldNow) April 13, 2026
Economic Outlook
Market experts warn that the KSE-100 could face further downward pressure if the maritime standoff escalates into direct kinetic engagement. With oil prices already surging past $100 a barrel globally, the PSX is bracing for a period of extreme volatility. Investors are now looking toward the Ministry of Finance and the ongoing IMF-World Bank meetings in Washington for any signs of a stabilization plan to buffer the domestic economy from these external shocks.
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