The PSX turned lower on Tuesday, with the benchmark KSE-100 Index falling more than 1,100 points by midday as rising global oil prices and fading hopes of a US-Iran agreement to reopen the Strait of Hormuz unsettled investors.

The KSE-100 Index stood at 180,177.68 points at 12:49pm, down 1,132.60 points, or 0.62%, from Monday’s close of 181,310.28.

The benchmark had earlier dropped 1,106.73 points, or 0.61%, to 180,203.55 points at 10:14am before recovering some of its losses.

The index traded between an intraday high of 181,017.29 and a low of 180,076.22, reflecting continued volatility as investors assessed developments in global energy markets and the geopolitical situation surrounding Iran.

Market activity remained relatively strong, with around 218.25 million shares changing hands by midday. The total traded value stood at approximately Rs13.92 billion.

The decline came as international oil prices moved higher following fresh comments from US President Donald Trump, who demanded compensation from Iran for damages and kept the possibility of further escalation open.

The remarks increased uncertainty over negotiations between Washington and Tehran and weakened expectations of an agreement that could restore normal shipping through the Strait of Hormuz.

The strategic waterway remains a major concern for Pakistan because the country depends heavily on imported fuel to meet its energy requirements.

Any prolonged disruption to shipping through the Strait of Hormuz could raise global oil prices and significantly increase Pakistan’s import bill. Higher energy costs could also place additional pressure on the country’s external account and inflation outlook.

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Investors therefore remained cautious as they assessed the potential impact of geopolitical developments on Pakistan’s economy and corporate earnings.

The latest decline also followed recent selling pressure in the domestic equity market, where investors have increasingly booked profits after strong gains pushed the benchmark to elevated levels.

Market participants are now closely watching global oil prices, developments in US-Iran negotiations and the security situation around the Strait of Hormuz for signals that could determine the direction of the local market.

For Pakistan, a sustained rise in crude prices could pose additional challenges by increasing the cost of energy imports and widening pressure on foreign exchange requirements.

The KSE-100’s midday decline therefore reflected not only profit-taking but also growing concerns that a prolonged Middle East crisis could create fresh economic and financial pressures for the country.