In a sharp decline, the Pakistan Stock Exchange (PSX) witnessed the KSE-100 index plummet by 5,478 points, closing at 167,691 points on February 23, 2026. This marks a significant drop of 3.16% from the previous close of 173,169 points, erasing last week's gains and pushing the market deeper into negative territory. The decline was exacerbated by escalating geopolitical tensions, particularly following US President Donald Trump's warning about potential military action against Iran if a nuclear deal is not reached. Analysts from JS Global Capital noted that 'risk appetite remains fragile,' as investors reacted swiftly to heightened geopolitical risks without waiting for further economic data, leading to a sell-off in the market. The index briefly touched a low of 166,886 points during early trading, reflecting a lack of investor confidence amid the uncertainty.