Australian shares fall as Middle East tensions lift oil prices

Summarised from 2 outlets · Updated 26 Oct, 02:19 · Archive

Australian shares fell as Middle East conflict pushed oil prices towards their highest levels since April.

The Australian share market declined on Monday as Middle East tensions pushed oil prices and inflation concerns higher. The S&P/ASX200 index fell 33.4 points, or 0.39 per cent, to 8760.9 by midday, while the All Ordinaries dropped 28.6 points, or 0.32 per cent, to 8877.2.

Brent crude surged towards US$117 a barrel, approaching its peak of above US$120 hit in late April. Tapas Strickland, chief market strategist at Moomoo, cited signs of US preparation for military strikes on Iran and ongoing attacks by the Houthis on Saudi Arabia as drivers of the price spike. He warned that the sharp rise in oil prices was 'reviving global stagflation concerns just as central banks reach delicate inflection points'.

Mining stocks rebounded to limit damage to the broader market. Energy stocks surged 1.4 per cent, led by Woodside and Santos, while uranium stocks also rallied. BHP gained 1.2 per cent to $55.67 after copper prices rebounded. Meanwhile, the Reserve Bank is now given two-in-three odds of raising the official cash rate on Melbourne Cup Day, which would add 25 basis points to take the rate to 4.85 per cent, its highest level in 18 years.

How it is being reported

• Australian shares dip as oil nears conflict peakRebounding mining stocks are limiting the damage to the local stock market, as risk sentiment continues to sour due to soaring oil prices and inflation risks.Perth Now · 26 Oct, 01:45
• Australian shares dip as oil nears conflict peakRebounding mining stocks are limiting the damage to the local stock market, as risk sentiment continues to sour due to soaring oil prices and inflation risks.The West Australian · 26 Oct, 01:45

In this story: Australian share market · S&P/ASX200 · Woodside · Santos · BHP · Reserve Bank · Iran · Saudi Arabia

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