On Friday, the Pakistan Stock Exchange’s KSE-100 Index plunged sharply amid escalating geopolitical tensions following Israeli airstrikes on Iranian nuclear and military sites. The index initially reached an intraday high of 123,058.06 but fell by over 2,400 points to a low of 121,604.59, reflecting investor anxiety. The strikes also caused an immediate 8% surge in oil prices, signaling concerns over potential disruptions in Middle Eastern oil supply.
The Israeli military confirmed Operation Rising Lion, involving more than 200 jets targeting around 100 locations across Iran, including Tehran, Natanz, and other critical nuclear and military facilities. The attacks resulted in the deaths of high-ranking Iranian military officials and significant damage to nuclear enrichment sites. In retaliation, Iran launched approximately 100 drones towards Israel, escalating fears of a broader conflict in the region.
This military escalation has unsettled global markets, with regional stock exchanges and commodity prices reacting to the uncertainty. The State Bank of Pakistan announced its upcoming Monetary Policy Committee meeting amid this volatile environment, underscoring the complex interplay between geopolitical risks and economic policy decisions. Market watchers remain cautious as the situation continues to evolve.