The Pakistan Stock Exchange (PSX) benchmark index, the KSE-100, fell more than 2% in early trading, hovering around 176,309 points as investors reacted to the reimposition of a US naval blockade on Iran.
The sharp decline reflects immediate risk-off sentiment driven by fears of renewed supply chain disruptions and energy market volatility in the region.
The KSE-100 previously dropped 6,400 points to around 179,792 after US military airstrikes against Iran, and earlier fell 2,500 points to 183,758 on similar tensions.
Selling pressure was broad-based across the exchange, with traders offloading positions amid uncertainty over the duration and scope of the new maritime restrictions.
The move marks the latest leg in a prolonged period of market instability for Pakistan's equity market, which has been highly sensitive to geopolitical developments in the Middle East.
This development follows a series of severe sell-offs in recent weeks.
The KSE-100 previously dropped 6,400 points to around 179,792 after US military airstrikes against Iran, and earlier fell 2,500 points to 183,758 on similar tensions.