The Pakistan Stock Exchange (PSX) benchmark index, KSE-100, experienced a sharp decline of 6,408.23 points (3.56%) on Tuesday, dropping to 173,518.81 from the previous close of 179,927.04.

This massive sell-off was triggered by renewed tensions between the US and Iran, including the reimposition of a naval blockade and intensified attacks in the Strait of Hormuz.Global oil prices surged, with Brent crude rising $2.89 to $86.19 per barrel and US West Texas Intermediate crude up $1.53 to $79.67.Analysts attribute the decline to heightened geopolitical risks, fears of disrupted oil supplies, and investor uncertainty.

Key contributors to the drop included United Bank Limited (UBL), Engro Holdings, and Meezan Bank, which collectively shaved 2,057 points from the index.

The market's volatility was exacerbated by profit-taking after a recent rally and broader global market fluctuations, including mixed US stock futures and European shares opening lower due to the conflict's impact on corporate earnings.The incident underscores the interconnectedness of geopolitical events and financial markets.