Australian shares are plummeting towards their worst session since the early days of the US-led war on Iran as waves of attacks on oil tankers and military assets fuel a relentless rise in crude prices.
The S&P/ASX200 plunged 159.9 points by midday on Thursday, down 1.79 per cent, to 8,751.5, as the broader All Ordinaries dropped by 158 points, or 1.74 per cent, to 8,944.9.
Brent crude spiked to almost $US102 a barrel overnight after the US and Iran struck at least 15 oil tankers in the biggest series of attacks on shipping since the war began in late February.
Bond yields spiked after traders shrugged off an attempted US Treasury intervention.
The top-200 was on track for its worst session since crumbling 2.85 per cent on March 9.
Australian shares were facing a triple headwind, Moomoo chief market strategist Tapas Strickland said.
“Australian investors find themselves caught in an uncomfortable squeeze: surging crude oil, a jump in long-term sovereign bond yields and a firmer Australian dollar sitting at a four-month high against the greenback,” Mr Strickland said.
“While our resource and energy heavyweights will find some insulation given their commodities exposure, rising borrowing costs pose a distinct headwind for broader domestic corporate earnings and equity valuations.”
Local miners dragged the bourse lower, as more than 3.6 per cent drops in BHP and Rio Tinto weighed heavily despite copper trading at record highs and iron ore futures clinging to most of their recent gains.
Fuel cost fears weighed on gold stocks, which fell broadly despite the precious metal hovering near $US4,409 ($A6,111) an ounce.
Battery minerals and rare earths producers also tumbled, with PLS, Liontown and Lynas dropping about four per cent or more.
The heavyweight financials sector was just that, diving 1.8 per cent as CommBank led the big four banks lower to trade close to four-month lows of $167.91.
The sell-off didn’t spare the energy segment, which lost 0.5 per cent despite oil prices helping lift Santos and refinery operators Ampol and Viva Energy.
Consumer-facing sectors have tumbled in recent days, with staples and discretionaries down more than four per cent since Monday amid crumbling consumer and business confidence.
In company news, market darling-turned-whipping boy for short-sellers Droneshield has appointed former MYOB and Afterpay finance chief Rebecca Lowde as chief financial officer.
The drone defence technology’s share price has tanked by almost two-thirds in 2026 after insider selling triggered a watchdog investigation and a slew of executive departures.
Woodside’s executive vice president and chief operating officer of international Daniel Kalms is stepping down after 25 years, with Gulf of America vice president Paa-Joe Akoto-Ampaw to step in until a replacement is found.
The Australian dollar is buying 72.18 US cents, down from 72.33 US cents on Wednesday at 5pm, trading roughly at four-month highs, with analysts divided on whether the Reserve Bank will deliver an interest rate hike in September or November.
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