Pakistan’s KSE-100 index dropped nearly 10% on Monday due to escalating geopolitical tensions, including the US-Iran conflict and Pakistan’s military operations in Afghanistan. The index stood at 151,798.54 at 2:19 pm, marking a 9.68% decline. The KSE-30 index also fell by about 9.8%, leading to a temporary trading halt.
Nationwide unrest followed US-Israeli strikes on Iran, resulting in the death of Supreme Leader Ayatollah Ali Khamenei and at least 35 civilians in protests near US diplomatic missions. In Karachi, clashes outside the US consulate left 12 protesters dead and over 30 injured. Calls for demonstrations at the US Embassy in Islamabad and Consulate General Peshawar further escalated tensions.
The fragile ceasefire between the Afghan Taliban and Pakistan collapsed as Pakistan initiated an open war with Kabul. Prime Minister Shehbaz Sharif conducted a high-level security meeting to assess the regional situation post the Iran developments and ongoing military actions in Afghanistan. Markets in the Asia Pacific region experienced volatility as traders evaluated the economic impact of rising tensions.
India’s Nifty index dropped by 1.24%, settling at 24,865.70, while the Sensex fell by 1.29% to close at 80,238.85, its lowest level since September 2025. US President Donald Trump hinted at a potential continuation of US-Israeli military actions for up to four weeks.
