PSX sheds over 3,500 points after Trump announces Hormuz blockade

The Pakistan Stock Exchange witnessed a sharp decline as the benchmark index shed over 3,500 points following the announcement by Donald Trump regarding a blockade of the Strait of Hormuz. The move triggered panic selling and heightened uncertainty across financial markets.

Market participants reacted negatively to fears of disrupted global oil supplies and escalating geopolitical tensions, which could have significant economic implications for energy-importing countries like Pakistan. Heavy selling pressure was observed across major sectors, including banking, energy and cement.

Analysts said the blockade announcement has intensified concerns about rising inflation, currency pressure and broader economic instability, leading investors to adopt a cautious stance. Experts warned that continued volatility is likely unless there is clarity on the geopolitical situation and energy supply outlook.