The Pakistan Stock Exchange (PSX) benchmark index, the KSE-100, suffered a severe sell-off on Tuesday, shedding more than 5,600 points during intraday trading.
The sharp decline marks a continuation of the market's negative reaction to the escalation of hostilities between the United States and Iran, which has triggered broader risk-off sentiment across emerging markets.
This latest drop follows a previous session where the KSE-100 fell 6,400 points to hover around 179,792, and an earlier decline of 2,500 points to 183,758.
Global energy markets are also reflecting the heightened geopolitical tension.
Brent crude prices rose to their highest level in four weeks, driven by concerns over potential disruptions to shipping routes through the Strait of Hormuz.
The surge in oil prices adds to the macroeconomic pressure on import-dependent economies like Pakistan, where energy costs directly impact inflation and current account balances.
This latest drop follows a previous session where the KSE-100 fell 6,400 points to hover around 179,792, and an earlier decline of 2,500 points to 183,758.