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Monday, 02 March 2026 | Web Desk
The ongoing war between Iran and the United States has sent shockwaves through global financial markets, with the Pakistan Stock Exchange (PSX) suffering its worst single-day plunge as trading opened for the week.
The benchmark KSE-100 index opened on a deeply negative note, plummeting by 15,344 points to hit 152,717—a catastrophic drop that forced regulators to halt trading for one hour under the circuit breaker mechanism.
Circuit Breaker Triggered
The sheer scale of the sell-off, which saw over 15,000 points wiped out within minutes of opening, triggered automatic trading halts designed to prevent market freezes during extreme volatility. The index eventually stabilized somewhat after trading resumed but remained deep in negative territory.
Gulf Markets Shut Down
The regional contagion has forced multiple Gulf stock exchanges to suspend operations entirely:
- Dubai Financial Market and Abu Dhabi Securities Exchange will remain closed on Monday and Tuesday.
- Kuwait Stock Exchange has been shut until further notice.
These closures reflect the direct impact of the conflict, with Gulf states finding themselves in the crossfire of Iranian retaliatory strikes targeting US military installations across the region.
Asian Markets Tumble
The sell-off extended across Asian markets as investors fled risk assets:
- Hong Kong stocks plunged over 2 percent in early trade
- Taiwan market dropped 2.3 percent at opening
- Japan’s Nikkei index fell 1.5 percent
- Shanghai Composite edged down 0.27 percent
Investor Panic Grips Region
Market analysts attribute the panic to fears of prolonged regional conflict, potential oil supply disruptions, and the unprecedented targeting of Gulf state infrastructure. With Iran having launched retaliatory strikes on US bases across multiple Gulf countries—including reported hits in Kuwait, Qatar, and the UAE—investors are bracing for a protracted confrontation that could destabilize the entire region’s economy.
The PSX’s 15,000-point collapse represents one of the sharpest declines in the exchange’s history, underscoring just how vulnerable Pakistan’s markets remain to geopolitical shocks beyond its borders.
