Karachi: Pakistan’s benchmark KSE-100 index plunged nearly 10 percent on Monday as rising tensions in the region shook investor confidence. The index was at 1,51,798.54 around 2:19 pm, down 9.68 percent.
The KSE-30 index also dropped sharply, falling around 9.8 percent. Trading was halted for one hour due to the steep fall. When the market reopened, the KSE-30 was still trading about 7.3 percent lower.
US-Iran Conflict Sparks Unrest
The sharp selloff came as tensions increased after US-Israeli strikes on Iran reportedly killed Supreme Leader Ayatollah Ali Khamenei. Following the strikes, protests broke out across Pakistan.
Local media reports said at least 35 civilians were killed during demonstrations near United States diplomatic missions. At least 12 protesters died and over 30 were injured in clashes outside the US Consulate in Karachi after United States Marine security personnel opened fire.
Social media visuals showed damage to the US Consulate in Karachi, with smashed doors and windows and parts of the building set on fire. Protesters were seen clashing with security forces.
Calls for protests were also made at the US Embassy in Islamabad and the Consulate General in Peshawar.
Afghan Tensions Add Pressure
At the same time, tensions rose on Pakistan’s western border. The fragile ceasefire between Pakistan and the Afghan Taliban collapsed after Pakistan declared open war with Kabul.
Prime Minister Shehbaz Sharif chaired a high-level meeting to review the internal and regional security situation in light of the Iran developments and the ongoing military operation in Afghanistan.
Regional Markets Also Volatile
Markets across the Asia-Pacific region remained unstable as traders assessed the possible economic impact of the rising tensions.
In India, the Nifty fell 1.24 percent or 312.95 points to settle at 24,865.70. The Sensex dropped 1.29 percent or 1,048.34 points to close at 80,238.85, its lowest level since September 2025.
US President Donald Trump signalled that the US-Israeli military action could continue for four weeks, adding to global uncertainty.
