The Pakistan Stock Exchange (PSX) rebounded strongly on Tuesday, recovering more than 2,000 points after a sharp previous-day selloff triggered by rising Middle East tensions.

The Pakistan Stock Exchange saw its benchmark KSE-100 index climb to 154,071.09 points, gaining 2,098.10 points or 1.38% from the last close of 151,972.99 points. The recovery followed a massive decline of over 16,000 points in the prior session amid panic selling.

Market analysts described the rebound as a technical correction after excessive pressure. Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, said the market was bouncing back after a significant drop. Maaz Mulla of Topline Securities noted that value hunters stepped in following heavy mutual fund selling, but questioned whether the recovery would sustain beyond a short-term bounce.

Global markets remained under pressure as geopolitical risks escalated. US and Israeli strikes on Iran fueled uncertainty over energy supplies and global trade. Asian equities declined, with major indices in Korea and Japan falling sharply. US futures also traded lower as investors assessed potential economic consequences.

Also Read: Multan Sultans set for PSL comeback

Tensions intensified after reports that the Strait of Hormuz faced disruptions and warnings over maritime traffic. Energy markets reacted strongly, pushing oil prices higher. Brent crude futures rose to 79.22 dollars per barrel, while natural gas prices in Europe and Asia surged around 40% earlier in the week.

Shipping costs for oil transport also jumped, with tanker rates reportedly exceeding 400,000 dollars per day.