Pakistan’s benchmark KSE-100 Index fell sharply in early trading on Monday after negotiations between the United States and Iran ended without an agreement, dampening investor sentiment and triggering broad-based selling across key sectors.

The index dropped nearly 4,800 points within minutes of the market opening. By 9:34 a.m. in Islamabad time, it was trading at 162,396.21, down 4,795.16 points, or 2.87%.

Losses were recorded across automobiles, cement, commercial banks, oil and gas exploration companies, oil marketing firms, power producers and refining stocks, reflecting widespread risk-off sentiment among investors.

Index-heavy shares including Attock Refinery Limited, Hub Power Company, Mari Energies Limited, Oil and Gas Development Company, Pakistan Oilfields Limited, Pakistan Petroleum Limited, Pakistan State Oil, Sui Southern Gas Company, Sui Northern Gas Pipelines Limited and Wafi Energy Pakistan all traded lower.

The decline followed remarks by JD Vance, who said his negotiating team was leaving Pakistan after about 21 hours of talks failed to produce a breakthrough. He cited disagreements over U.S. conditions, including commitments related to nuclear weapons development.

Separately, Mohammad Baqer Qalibaf said no agreement was expected in a single round of negotiations, highlighting a persistent trust deficit following the latest indirect talks facilitated by Pakistan.

The setback reversed optimism seen last week, when expectations of progress in Washington–Tehran diplomacy supported equities. The KSE-100 Index had risen 1,673.87 points, or 1.01%, to close at 167,191.38 in the previous session.