After the US threatened to ban Iranian ports, the PSX fell more than 5,000 points.

The United States’ declaration of a possible blockade on Iranian ports put pressure on the Pakistan Stock Exchange (PSX) as it began the new trading week.

The KSE-100 index fell more than 5,000 points during early trading, closing at 161,659 from 167,191 previous week.

Investor worries about escalating geopolitical tensions following the failure of US-Iran negotiations to reach a resolution are reflected in the decrease.

Markets in other parts of Asia also displayed unfavorable patterns. Japan’s Nikkei index dropped by almost 1%, while South Korea’s KOSPI index dropped by 2.08%. China’s Shanghai Composite had a little fall, but Hong Kong’s Hang Seng index fell by over 1%.

Analysts point out that in the upcoming days, regional markets and investor confidence may be further impacted by the ongoing uncertainty surrounding U.S.-Iran relations.