Despite tensions in the Middle East, the PSX recovers from its record crash.

A day after suffering enormous losses as a result of geopolitical concerns, the Pakistan Stock Exchange (PSX) recovered with notable gains on Tuesday.

In comparison to the previous closing of 151,972 points, the KSE-100 index increased by more than 4,000 points during intraday trading to reach 156,106 points.

The stock market saw a sharp decline on Monday, with the KSE-100 index falling more than 16,000 points as growing geopolitical tensions between the US, Israel, and Iran caused widespread investor panic and a large sell-off.

The KSE-100 index experienced a notable 9.57% loss from the finish of 168,062.16 points the day before, dropping 16,089.17 points to settle at 151,972.99 points.

As concerns about supply interruptions from the major Middle East producing region increased due to the growing U.S.-Israeli confrontation with Iran and threats to shipping via the Strait of Hormuz, oil prices increased for a third day on Tuesday.

By 0107 GMT, Brent crude futures were up $1.10, or 1.4%, at $78.83 a barrel.

The contract rose to $82.37 on Monday, the highest level since January 2025, but it trimmed those gains to close 6.7% higher.

At $71.97 per barrel, U.S. West Texas Intermediate crude surged 74 cents, or 1%.

The contract first rose to its highest level since June 2025 during the previous session, but it then fell back to settle up 6.3%.