Stocks fell sharply in intraday trade on Monday, as renewed US-Iran hostilities, worsening Middle East tensions and a jump in global oil prices triggered selling pressure at the Pakistan Stock Exchange (PSX).

The benchmark KSE-100 Index touched an intraday low of 179,448.52, down 2,793.25 points, or 1.53%, from the previous close of 182,241.77. Its intraday high stood at 180,597.14, still down 1,644.63 points, or 0.90%.

“PSX slid over 1% owing to Iran escalation and worsening Middle East tensions,” Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, told Geo.tv.

Mehanti said investor fears over inflation amid a surge in global crude oil prices and the potential impact on Pakistan’s external account played a catalyst role in the selling pressure.

Ismail Iqbal Securities also expected the market to remain under pressure as geopolitical tensions continued to escalate alongside rising oil prices.

“Sentiment is likely to remain sensitive to any fresh developments on the geopolitical and macroeconomic fronts,” the brokerage said.

“The market opened lower as renewed US-Iran hostilities drove oil prices higher, prompting investors to adopt a cautious stance,” said Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited.

“Despite the prevailing geopolitical uncertainty, support emerged at lower levels in anticipation of renewed diplomatic negotiations once the escalation subsides,” he added

Oil prices jumped more than 4% on Monday after another flare-up between the United States and Iran threatened their already fragile truce.

The renewed hostilities followed last week’s exchange of fire and came as negotiators struggled to reach a lasting peace deal to keep the Strait of Hormuz open.

The US military launched a new wave of strikes on Sunday after renewed fighting over the waterway saw several of Washington’s Gulf allies targeted by incoming fire.

Both main oil contracts spiked as much as 4.5%, fanning fresh concerns that inflation could force central banks to raise interest rates.