KARACHI, May 18 —The Pakistan Stock Exchange (PSX) suffered a massive blow on Monday morning, with the benchmark KSE-100 index shedding more than 2,500 points during intraday trade. The market plummeted 1.51 percent to hit a low of 163,088.30 points by early afternoon, extending a deep bearish run into its seventh consecutive session. The aggressive sell-off mirrors a broader downward slide across major Asian markets as international oil prices jumped over two percent due to the ongoing geopolitical gridlock.
Quick Facts
- The benchmark KSE-100 index plummeted by 2,507.77 points during intraday trade.
- The market dropped to 163,088.30 points, down 1.51% from its previous close.
- Global oil prices jumped over 2% due to the ongoing US-Iran diplomatic impasse.
- Fears over prolonged shipping closures in the strategic Strait of Hormuz spooked investors.
- Major regional markets also fell, with Tokyo down 1.0%, Hong Kong down 1.4%, and Jakarta tumbling 2.7%.
- Domestic trading remains highly cautious ahead of the upcoming federal budget announcement.
KSE-100 falls 1.30% as selling hits major sectors amid fresh drone strikes at the UAE and Saudi Arabia; Asian markets also decline; oil prices and bond yields rise
Read: https://t.co/rQQAb9RDcV pic.twitter.com/ip4RdnFfE8
— Profit (@Profitpk) May 18, 2026
The primary driver behind the market panic is the lack of tangible progress in the highly anticipated US-Iran peace negotiations. With the temporary ceasefire hanging by a thread and Washington demanding steep nuclear concessions, investors are increasingly worried about a prolonged closure of the strategic Strait of Hormuz. Because this vital maritime route handles a massive portion of the world’s energy transit, its continued blockade threatens to disrupt global fuel supplies and drive up domestic import costs for energy-dependent economies like Pakistan.
Market analysts note that the KSE-100 had already sunk below its pre-war levels last week, and today’s crash highlights deep systemic anxiety. Compounding the international security crisis, local investors are also pulling back capital and adopting a wait-and-see approach ahead of the federal budget next month. Experts warn that the local bourse will likely remain highly volatile and bound to international oil trends until clear diplomatic breakthroughs emerge from the Middle East peace channels.
