Australia shares sink to 1-1/2-month low as commodities, Mideast tensions weigh

The Australian share benchmark hit its lowest level in more than a month on Monday, bogged down by heavyweight commodity-linked stocks, while a surge in crude prices fanned inflationary worries.

Market uncertainty loomed after efforts to end the US-Israeli war with Iran appeared to have stalled, while US President Donald Trump warned that the “clock is ticking” for Iran if its leaders do not act quickly.

Oil prices touched a two-week peak on the day after a nuclear power plant in the United Arab Emirates came under attack, bringing inflation fears back to focus for Australia, which is already grappling with a jump in consumer prices.

The S&P/ASX 200 index slipped 0.9% to 8,553.20 by 0026 GMT, its lowest since early April.

The benchmark marginally fell 0.1% on Friday, losing 1.2% over the week.

Mining stocks hit their lowest in two weeks, with BHP, Rio Tinto and Fortescue shedding between 2.2% and 2.8%.

Gold miners were down 3.7% in tandem with weakening bullion prices, on track for their largest single-day loss since April.

Index leaders Northern Star Resources and Evolution Mining declined 3.2% and 3.4%, respectively.

The industrials sub-index fell 3.2%, with supply-chain logistics firm Brambles slumping as much as 16.8% in the stock’s biggest one-day fall in more than nine years on an annual earnings downgrade.

Bucking the trend, energy stocks hit their highest in two weeks, benefiting from the oil price surge.

Sector majors Woodside Energy and Santos gained 1.9% and 1.7%, respectively.

Separately, Santos said that it achieved first oil at its Pikka project in the US state of Alaska.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index declined 0.5% to hit 12,904.54, its lowest level since early May.