The Pakistan Stock Exchange (PSX) turned lower on Tuesday, with the benchmark KSE-100 Index shedding more than 1,100 points by midday as a jump in oil prices and diminishing hopes of a US-Iran agreement to reopen the Strait of Hormuz rattled investors.

Oil prices climbed more than 1% after the US President Donald Trump demanded compensation from Tehran for damages, casting further doubt on prospects for a deal to end the conflict and restore traffic through the key oil-shipping route.

The KSE-100 Index was hovering at 180,177.68 points at 12.49pm, down 1,132.60 points, or -0.62%, from the previous close of 181,310.28.

The Index had earlier plunged 1,106.73 points, or 0.61%, to 180,203.55 at 10:14am, before recovering a substantial part of its losses.

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The benchmark Index traded between an intraday high of 181,017.29 and a low of 180,076.22.

Market activity remained strong, with 218.25 million shares changing hands, while traded value stood at approximately Rs13.92 billion.

The rise in global oil prices is a key concern for Pakistan, which relies heavily on imported energy, particularly as prolonged disruption in the Strait of Hormuz could increase the country’s import bill and add pressure to its external position.