On Monday, Pakistan’s main stock market (the KSE-100) fell significantly during the day. This happened after US President Donald Trump ordered a blockade of Iranian ports, which caused investors to panic and led to a crash at the Pakistan Stock Exchange.

The KSE-100 hit an all time low of 161,638.07 compared to its previous close of 167,191.37, as reported by Dawn. Then, after its initial drop, the stock market regained some ground. It hovered around the 162,000 mark for a while before climbing past 163,000, eventually reaching a peak of 163,429.78 by 11:00 am on 13 April.

Pakistan Share Market Crash: What Led To Stock Crash?

The stock market took a big hit after President Trump ordered a blockade on Iranian ports. This happened because peace talks failed, making a seven-week-long conflict even worse, as reported by Dawn.

This news put more stress on local markets, which were already struggling because oil and energy shipments through the Strait of Hormuz have been disrupted. Iran has had this vital shipping route blocked since late February, when the US and Israel began air strikes.

Pakistan Share Market Crash: Is The Drop In KSE-100 linked to Hormuz Strait?

While a ceasefire was announced recently, it depended on the Strait of Hormuz being reopened. However, the military warned that they will attack any warships that try to enter the area, claiming those ships would be breaking the peace agreement, says Iran’s Islamic Revolutionary Guard Corps and reported by Dawn.

The market swings came after Pakistani stocks had jumped sharply earlier this month. On April 8, the KSE-100 index shot up by over 14,000 points in early trading after news of a ceasefire between the United States and Iran. This sudden rise led to a temporary halt in trading as per Pakistan Stock Exchange rules, Dawn reported.

Soon after the market opened, the index was up by 12,362.38 points, or 8.15%, reaching 164,035.83. This was the biggest one-day gain ever recorded in the history of the Pakistan Stock Exchange, breaking the previous record set in May 2025, according to Dawn.

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