KSE-100 Falls 6.99% as War With Iran Begins: Oil Stocks Hold Up Best
Coordinated US and Israeli strikes on Iran on 28 February sent oil sharply higher and triggered one of the largest one-day falls in the KSE-100's history. The selloff was broad, though oil producers held up far better than the import-heavy names.
The Middle East tipped into open conflict on 28 February 2026, when the United States and Israel launched coordinated strikes on Iran. When Pakistan's market reopened, the reaction was severe. Arab News reported the KSE-100 plunged more than 11,015 points, about 6.99 percent, its second-largest single-day drop on record, as surging oil prices battered investor confidence.
| KSE-100 on 2 Mar 2026 | Value |
|---|---|
| Points lost | ~11,015 |
| Percent fall | ~6.99% |
| Ranking | 2nd-largest one-day drop on record |
What happened when the Iran war began
The strikes rattled global energy markets immediately, pushing up the price of crude and refined products. For a country that imports most of its oil, that combination of higher fuel costs and a sudden jump in geopolitical risk is exactly what equity investors fear. Selling was indiscriminate, hitting heavyweight banks, cements and energy names alike as the index gave back weeks of gains in a single session.
Why an oil shock matters for PSX stocks
Two things move together in an oil shock like this, and they pull PSX names in opposite directions. Higher international crude lifts the revenue of local exploration companies, whose selling prices are linked to global benchmarks. At the same time, dearer oil widens Pakistan's import bill, pressures the rupee and stokes inflation, which is negative for companies that import inputs or rely on consumer financing. On a day of broad panic, almost everything falls, but the relative damage is uneven.
Which oil, auto and cement stocks moved
Oil and gas exploration names such as OGDC and PPL are the natural relative beneficiaries of a war-driven crude spike, because their wellhead prices track international oil. That is an exposure worth flagging as positive even on a red day. On the other side, an importer like Indus Motor faces costlier kits and a weaker rupee, while a fuel marketer such as Pakistan State Oil carries inventory and circular-debt risk into a volatile market. Cement names like Lucky Cement feel the second-round hit from higher energy costs and softer demand.
What to watch: the Strait of Hormuz and Brent
The near-term swing factor is the Strait of Hormuz and whether shipping through the Gulf stays open. Watch the direction of Brent, the rupee against the dollar, and any sign of de-escalation talks, since a single headline on either can reverse sentiment quickly. For PSX specifically, the gap between how producers and importers trade is the cleaner read than the index level itself.
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Frequently asked questions
Why did the KSE-100 crash on 2 March 2026?
Coordinated US and Israeli strikes on Iran on 28 February sent oil prices sharply higher, and the import-heavy Pakistani market fell about 6.99 percent, one of its largest one-day drops on record.
Which PSX stocks hold up best in an oil shock?
Oil and gas explorers like OGDC and PPL hold up relatively well because their selling prices track global crude, while importers such as Indus Motor and fuel marketer Pakistan State Oil are on the weaker side. This is exposure, not advice.
What should investors watch after the strikes?
The Strait of Hormuz and whether Gulf shipping stays open, the price of Brent crude, and the rupee, since any of these can shift sentiment quickly.
Informational only — not investment advice. Sentiment reflects news exposure, not a buy/sell recommendation or price forecast. Do your own research and consult a licensed professional.
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