Pakistan Stock Exchange Drops 2,500 Points Amid Israel-Iran Military Clash

The Pakistan Stock Exchange (PSX) experienced a sharp decline exceeding 2,000 points on June 13, 2025, amid escalating geopolitical tensions following Israel's military strikes on Iran's nuclear facilities. The KSE-100 Index fell below 124,000 points as investor panic intensified due to fears of a broader Middle East conflict, with heavy losses recorded across multiple sectors including automobile assembly, cement, banking, oil and gas, and power generation. The conflict also triggered a surge in global oil prices, with Brent crude rising over 6%, exacerbating inflation risks and economic pressure in Pakistan, a country heavily reliant on oil imports. Israeli Prime Minister Benjamin Netanyahu confirmed the continuation of military operations, while Iran vowed a strong response, with significant casualties reported in the strikes, including senior Iranian military officials and nuclear scientists. Global markets reacted negatively, with sharp declines in U.S. and Asian futures, and investors sought refuge in safe-haven assets like gold and the Swiss franc. The combined geopolitical and economic uncertainties, along with concerns about Pakistan’s upcoming fiscal budget, contributed to a bearish outlook for the PSX.