The Pakistan Stock Exchange (PSX) opened the week in the red, with the benchmark KSE-100 index plummeting 2,215.27 points to 180,026.5 from a previous close of 182,241.77.

This sharp decline followed heightened geopolitical tensions between the US and Iran over control of the Strait of Hormuz, which also drove oil prices up over 4% on Monday.

Market analysts noted that the downturn reflects ongoing uncertainty due to the escalating conflict, which has disrupted global oil supplies and fueled inflationary pressures.

The PSX's intraday plunge contrasts with earlier recovery efforts in the previous week, where value-hunting strategies helped reverse a three-day losing streak.The situation underscores the vulnerability of emerging markets to geopolitical shocks, particularly those affecting energy prices.

Investors are closely monitoring developments as the conflict could have long-term implications for Pakistan's economic stability and trade relations.