The ASX Today: Oil surge drags market lower as Middle East tensions flare

Good afternoon and welcome to The ASX Today. The Australian stock market is back under pressure on Thursday in Week 28, with the ASX 200 falling 0.6 per cent as rising oil prices and the renewed Middle East conflicts reignite fears inflation could remain higher for longer.

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The sell-off follows fresh U.S. strikes on Iran, with Donald Trump declaring the ceasefire is effectively “over”. At the same time, Washington has revoked a sanctions waiver that allowed Tehran to continue exporting oil, sending Brent crude above US$79 a barrel. Materials are leading today’s losses. BHP has fallen 1.7 per cent, Newmont the same. West African Resources has dropped more than 5 per cent as gold struggles to regain momentum after three sessions of losses.

Energy remains the standout. Woodside has climbed 1.9 per cent, & Santos added 1.4 per cent after yesterday’s rally; investors continue betting higher oil prices will support earnings if tensions around the Strait of Hormuz persist.

In ASX-listed company news, Steadfast is up 1 per cent after takeover bidders reaffirmed their $7.7 billion proposal for the insurance broker. Fletcher Building has jumped more than 6 per cent after upgrading its full-year earnings guidance on stronger property sales and improving volumes.

Northern Star is down 2 per cent despite appointing former Perseus chief executive Jeff Quartermaine as an independent non-executive director.

Elsewhere, Catalyst Metals has slipped 3 per cent after locking in forward gold sales to reduce earnings volatility, while Australia’s biggest IPO of the year got off to a strong start, with construction group FDC Consolidated jumping 14 per cent on its ASX debut after raising $400 million.

The key theme today Down Under has been that geopolitical risk is back in the driver’s seat. With oil climbing and uncertainty around the Strait of Hormuz growing again, investors are once more weighing the impact higher energy prices could have on inflation, rates, and global markets.

That’s The ASX Today. Have a great evening.

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