KARACHI – The Pakistan Stock Exchange (PSX) turned bearish on Thursday, reversing a strong rally from the previous session, as escalating tensions in the Middle East unsettled investors.
The KSE-100 benchmark index dropped 2,730.67 points, closing at 151,561.58 compared to the prior session’s 154,292.25.
Market jitters followed reports that Iran targeted energy infrastructure in Qatar and other Gulf countries in retaliation for an Israeli strike on its energy facilities, heightening regional uncertainty.
Meanwhile, oil prices surged on Thursday after Iran targeted energy facilities across the Middle East in retaliation for an Israeli strike on the South Pars gas field, marking a significant escalation in the conflict involving the United States and Israel.
By 0400 GMT, Brent crude futures had climbed $4.66, or 4.3%, to $112.04 per barrel, having earlier spiked over $5 to $112.86. U.S. West Texas Intermediate (WTI) crude increased by 96 cents, or 1%, reaching $97.28 per barrel after rising more than $3 earlier in the session.
On Wednesday, Brent closed up 3.8%, while WTI ended nearly flat. WTI has been trading at its largest discount to Brent in 11 years, influenced by U.S. strategic reserve releases and higher shipping costs, whereas renewed attacks on energy infrastructure in the Middle East have strengthened Brent prices.
A day earlier, the KSE-100 index gained over 4,000 points.
