Pakistan’s stock market saw a sharp sell-off on Monday, with the benchmark KSE-100 index plunging nearly 6,000 points as the collapse of US-Iran ceasefire talks and rising tensions in the Strait of Hormuz hit investor sentiment.KSE-100 index dropped 3.5 per cent to hit an intraday low of 1,61,638, reversing last week’s sharp rally when it had surged over 12,000 points after news of a temporary ceasefire between the US and Iran, ET reported.The failed negotiations, mediated by Pakistan’s Prime Minister Shehbaz Sharif and army chief Asim Munir, have heightened fears of a prolonged conflict in Middle East, triggering volatility across regional markets.US President Donald Trump over the weekend ordered military forces to begin blockading the Strait of Hormuz and clearing suspected sea mines, escalating the situation after the talks in Islamabad failed to produce an agreement.“So, there you have it, the meeting went well, most points were agreed to, but the only point that really mattered, NUCLEAR, was not. Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz…We will also begin destroying the mines the Iranians laid in the Straits. Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!” Trump said in a post on Truth Social.Following the remarks, Iran’s Revolutionary Guards warned that military vessels approaching the Strait would be treated as a ceasefire breach and dealt with “harshly and decisively”.The escalation around the Strait of Hormuz pushed crude prices above $100 per barrel, adding to inflation concerns and dampening global risk appetite.The sharp fall in Pakistan’s markets also came amid a broader weakness in Asian equities. India’s Sensex and Nifty fell more than 2 per cent in early trade, while Japan’s Nikkei, China’s Shanghai Composite and South Korea’s Kospi traded in the red.Despite the volatility, Jefferies’ global equity strategist Christopher Wood said Pakistan could present a “high-beta opportunity” around IMF support, while maintaining a marginally positive long-term outlook on India.