Karachi, July 8,2026: The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Wednesday after US President Donald Trump’s remarks declaring the interim agreement with Iran “over” rattled investor sentiment, dragging the benchmark KSE-100 Index sharply lower.
The benchmark KSE-100 Index plunged 6,449.34 points, or 3.46 per cent, to close at 179,806.21, down from the previous close of 186,255.55, as broad-based losses swept across the market in response to the latest geopolitical developments.
Market participants said investor confidence was shaken by Trump’s statement, which heightened concerns over renewed regional instability and its potential impact on global energy markets and risk assets.
“The statement by President Trump about the ceasefire effectively being over has spooked oil and equity markets. The reaction can clearly be seen in the market, with shares coming off violently from their recent highs,” Ismail Iqbal Securities Chief Executive Officer Ahfaz Mustafa said.
The sell-off in Karachi mirrored a broader global market retreat. Oil prices surged more than 5pc on Wednesday, while global equities and bond prices fell as investors moved away from riskier assets after Trump’s remarks.
Speaking in Ankara ahead of a NATO summit in the Turkish capital, Trump said the interim arrangement with Iran was “over” and signalled no interest in further engagement with Tehran. “As far as I’m concerned, it’s just a waste of time dealing with them,” he said.
European shares dropped 1.6pc, putting the STOXX 600 on course for its biggest one-day fall since mid-March, while US futures also declined between 0.8pc and 1.2pc. The VIX volatility index, often seen as Wall Street’s fear gauge, jumped nearly 13pc in its largest one-day rise in more than a month.
Analysts said the latest geopolitical shock added to existing pressure on equity markets, where investors had already begun reassessing the lofty valuations of some of this year’s high-flying semiconductor and artificial intelligence-linked stocks.
