Middle East War Sparks Massive PSX Crash as KSE-100 Index Falls Over 9,000 Points

KARACHI, March 9, 2026: The Pakistan Stock Exchange witnessed a sharp decline on Monday as escalating tensions in the Middle East triggered panic among investors.

The benchmark KSE-100 Index plunged more than 9,000 points in early trading, reflecting growing fears about the economic impact of the regional conflict.

During early trading, the KSE-100 Index fell 9,453.22 points, or nearly 6 percent, dropping to 148,042.88 points from the previous close of 157,496.10 points.

The stock market had already faced heavy pressure last week, when the benchmark index declined by 10,566 points (6.3 percent) amid concerns related to the ongoing Iran–Israel conflict 2026.

Following Monday’s sharp fall, trading at the Pakistan Stock Exchange was temporarily suspended for 45 minutes under market rules designed to control extreme volatility.

Market analysts believe investors will remain cautious as they closely watch geopolitical developments and economic indicators.

According to Arif Habib Limited research, the performance of the KSE-100 index this week will largely depend on developments in the Middle East and the outcome of the Monetary Policy Committee (MPC) meeting.

Analysts noted that despite recent volatility, the market currently trades at a price-to-earnings ratio of about 8.1 times and offers a dividend yield of around 6.3 percent, which many experts consider attractive compared with historical levels.

Stock markets across Asia also recorded sharp losses on Monday as the ongoing conflict pushed global oil prices sharply higher.

Investor sentiment weakened as concerns grew about disruptions to energy supplies from the Middle East.

The crisis intensified after Donald Trump, President of the United States, said the war could end only if Iran agreed to “unconditional surrender.”

Oil prices surged dramatically as markets feared supply disruptions.

The main US oil benchmark West Texas Intermediate jumped nearly 30 percent, reaching about $118.88 per barrel.

Meanwhile, global benchmark Brent Crude surged about 28 percent, hitting $118.73 per barrel.

Since the beginning of the war, WTI prices have increased by more than 75 percent, while Brent crude has risen over 60 percent, raising concerns about global inflation and economic stability.

Market experts say investors will continue to monitor developments in the Middle East, as prolonged conflict could further disrupt global markets.

They also warn that rising oil prices could increase inflationary pressure and create economic challenges for countries that rely heavily on energy imports.