Pakistan’s stock market came under fresh selling pressure on Wednesday as renewed US-Iran strikes sent oil prices higher and deepened concerns over supply disruptions and prolonged tensions in the Middle East.

Consequently, the benchmark KSE-100 index extended its decline, shedding 1,250.34 points, or 0.71%, by 1:14pm, with selling concentrated across automobiles, cement, commercial banks, exploration companies, power generation and oil marketing companies.

The benchmark had opened under heavy pressure, falling 1,663.16 points, or 0.94%, to 174,803.83 by 9:34am, as investors reacted to the escalation in the Middle East and the resulting rise in oil prices.

The index touched an intraday high of 175,841.83 and a low of 174,701.13, against the previous close of 176,466.99.

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Meanwhile, oil prices rose in early trade on Wednesday, extending the previous session’s surge, as concerns over supply disruption intensified after the United States and Iran exchanged strikes overnight, dimming hopes for a quick easing of tensions in the Middle East.

The renewed geopolitical uncertainty weighed on investor sentiment at the Pakistan Stock Exchange (PSX) as trading activity remained strong, with 153.68 million shares changing hands, while traded value stood at Rs10.82 billion.

The market’s weakness remained broad-based as investors assessed the potential impact of higher international oil prices and prolonged regional tensions on Pakistan’s import bill, inflationary pressures and corporate costs.