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Pakistan Stocks Crash 10% Amid US-Iran War, Afghan Conflict Chaos

Pakistan's benchmark KSE-100 index plummeted nearly 10% as escalating geopolitical crises rattled investor confidence. The selloff was triggered by nationwide unrest following US-Israeli strikes in Iran and violent protests targeting US diplomatic missions in Karachi. Simultaneously, the ceasefire between Pakistan and the Afghan Taliban collapsed, pushing the region towards open conflict. The volatility spread across Asia, with India's Sensex also dropping sharply to its lowest level in months.

Key Points: Pakistan Market Plunges 10% on US-Iran War, Afghan Tensions

  • KSE-100 index plunged nearly 10%
  • Unrest after US-Israeli strikes killed Iran's leader
  • Clashes at US consulate in Karachi leave casualties
  • Ceasefire with Afghan Taliban collapses
  • Asian markets volatile, India's Sensex hits multi-month low
2 min read

Pakistan's benchmark index plunges nearly 10 pc amid US-Iran war, Afghan tensions

Pakistan's KSE-100 index crashes nearly 10% as US-Iran conflict and military operations in Afghanistan trigger nationwide unrest and investor panic.

"The selloff came amid nationwide unrest following US-Israeli strikes on Iran - Local Media Reports"

New Delhi, March 2

Pakistan's benchmark KSE‑100 index plunged nearly 10 per cent on Monday amid escalating geopolitical tensions due to the US-Iran war along with the country's ongoing military operation in Afghanistan dampening investor sentiment.

The index was at 151,798.54 at about 2:19 pm, down 9.68 per cent. The KSE‑30 index fell around 9.8 per cent before trading was halted for an hour, after which the market reopened taking KSE‑30 to trade about 7.3 per cent lower.

The selloff came amid nationwide unrest following US‑Israeli strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei. Local media reports said that at least 35 civilians were killed in protests that erupted in multiple cities near United States diplomatic missions.

At least 12 protesters were killed and more than 30 were injured in clashes outside the US consulate in Karachi after United States Marine security personnel opened fire.

Calls for demonstrations at the US Embassy in Islamabad and Consulate General Peshawar were also made on Sunday. Visuals circulating on social media showed doors and windows of the US Consulate in Karachi smashed and set on fire, and chaotic scenes outside the consulate premises, with demonstrators damaging property and clashing with security personnel.

Meanwhile, the fragile ceasefire between the Afghan Taliban and Pakistan collapsed when the latter declared an open war with Kabul.

Prime Minister Shehbaz Sharif chaired a high-level meeting to review the regional and internal security situation in view of the recent developments in Iran and the ongoing military operation against Afghanistan.

Markets across the Asia Pacific remained volatile as traders assessed the potential economic fallout from rising regional tensions.

India's benchmark Nifty fell 1.24 per cent, or 312.95 points, to settle at 24,865.70. The Sensex dropped 1.29 per cent, or 1,048.34 points, to close at 80,238.85, marking its lowest level since September 2025.

US President Donald Trump has signalled that the US‑Israeli military action could continue for four weeks.

- IANS

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Reader Comments

P
Priya S
Very sad to read about the civilian casualties in the protests. Ordinary people always suffer the most in these conflicts, whether in Iran, Pakistan, or Afghanistan. The human cost is immense. 😔 Hope for peace and sanity to prevail.
A
Aman W
Geopolitical instability in our immediate neighborhood directly impacts us. Our markets fell too. India needs to be extra vigilant on security and economic fronts. This is a volatile situation.
S
Sarah B
From an investment perspective, this is a stark reminder of country risk. Investors flee at the first sign of major instability. Pakistan opening a front with Afghanistan while this US-Iran war is going on is a recipe for economic disaster. Their people will bear the brunt.
V
Vikram M
The article mentions the Taliban ceasefire collapse. This region has seen conflict for decades. When will there be lasting peace? It feels like a cycle that keeps repeating. India has managed to stay relatively insulated from the worst of it, but we can't be complacent.
K
Karthik V
While the focus is on markets, the real story is the humanitarian one. People killed outside consulates, cities in unrest. It's a tragedy. Also, a respectful criticism of the report: it could have included more on the impact on trade routes and energy prices for the region, which affects us all.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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