The Pakistan Stock Exchange (PSX) endured a brutal trading session on Tuesday, with the benchmark KSE-100 Index plunging 6,402 points, or 3.56 percent, to settle at 173,519, as renewed tensions between the United States and Iran sparked widespread investor panic.

The market came under heavy pressure after reports suggested the collapse of the interim ceasefire between Washington and Tehran. Investor sentiment deteriorated following reports of fresh U.S. airstrikes and the reimposition of a naval blockade, while Iran reportedly retaliated by targeting more oil tankers passing through the Strait of Hormuz.

The latest developments heightened concerns over disruptions to global energy supplies and the possibility of a broader regional conflict, prompting investors to reduce exposure to equities.

Banking, fertilizer, and cement stocks led the decline, with United Bank Limited (UBL), Engro Holdings, Fauji Fertilizer Company (FFC), Lucky Cement, and Meezan Bank together dragging the benchmark index down by 2,057 points.

Despite the sharp fall in prices, trading activity remained healthy. OGDC topped the market in traded value at Rs2.73 billion, followed by Maple Leaf Cement (Rs2.57 billion), Pakistan Petroleum Limited (Rs1.65 billion), DG Khan Cement (Rs1.60 billion), and FFC (Rs1.41 billion).

Overall, 913 million shares changed hands during the session, with total traded value reaching Rs45.6 billion, reflecting strong market participation even as investors rushed to sell amid mounting geopolitical uncertainty.