Tuesday's trading session on the Pakistan Stock Exchange offered a textbook example of how quickly optimism can unravel in today's volatile energy landscape. The KSE-100 index opened with a surge of nearly 2,500 points, only to surrender almost all of those gains by the closing bell, leaving investors with a net advance of just 205 points. Main Developments The benchmark index opened at 176,133.56 points, up 0.12% from the previous close, after hitting an intraday high of 178,370.45 shortly after 10 a.m. But profit-taking kicked in around noon, pushing the index below the 177,000-point level by 1:56 p.m. Topline Securities described the day as a case where a "strong start proved short-lived," as participants locked in gains at elevated levels. The brokerage noted that refinery stocks faced particular selling pressure amid speculation that the long-awaited refinery policy could face further delays. Read also: 3 ways Honeywell's refinery plan could reshape Pakistan's energy future Background Global oil prices fell more than 1% earlier Tuesday on reports of mediation efforts between the US and Iran, which initially boosted Pakistani equities. However, prices rebounded nearly 2% as hostilities in the Gulf continued and Yemen's Houthis threatened a naval blockade of Saudi Arabia. Brent crude settled at $90.84 a barrel, up $1.62, while US West Texas Intermediate crude gained $1.37 to $84.60. This reversal erased most of the early market gains, highlighting the PSX's sensitivity to energy price fluctuations. Why It Matters For Pakistani investors, the day's trading underscores how geopolitical tensions in the Middle East directly affect local market stability. Rising oil prices increase import costs, fuel inflation, and reduce foreign investment inflows—all factors that weigh on the KSE-100. Awais Ashraf, director of research at AKD Securities, noted that optimism around upcoming earnings reports from oil and gas exploration, cement, refinery, and textile companies provided some support. But those fundamentals couldn't offset the broader uncertainty triggered by energy market volatility. What's Next Markets will continue to watch US-Iran mediation efforts and any escalation in Gulf hostilities. The future of Pakistan's refinery policy remains a key variable, with delays potentially further depressing refinery stocks. Investors are also looking ahead to the ongoing earnings season, where stronger-than-expected results from select sectors could provide a floor for the market. But as Tuesday showed, even positive domestic news may not be enough to counter global headwinds.