Pakistan's KSE-30 Index suffered its largest single-day drop on record, plunging 9.6% in early trading before triggering an hour-long halt at the Pakistan Stock Exchange. The dramatic selloff came amid escalating Middle East tensions following US and Israeli strikes on Iran, prompting pro-Iran protests across Pakistan that turned deadly.

At least 10 people were killed in clashes with police as demonstrators attempted to storm the US Consulate in Karachi. The geopolitical turmoil compounded existing regional tensions, with Pakistan declaring "open war" against Afghanistan after cross-border strikes reached Kabul, killing hundreds. Analysts attribute the market crash to heavy forced unwinding by brokers in leveraged retail accounts.

"The overall tensions in the Middle East has tanked the market along with the pro-Iran protests around the country," said Bilal Khan, head of international equity sales at Karachi-based brokerage Arif Habib. While investors expect some buying later in the day as weak hands exit, the combination of regional conflicts and domestic unrest has created severe market volatility. The trading halt underscores how quickly geopolitical events can destabilize emerging markets.