Australian shares edge higher as energy stocks rise on oil supply worries

Australian shares edged higher on Monday, helped by energy stocks as attacks by the United States and Iran intensified over the weekend, pushing oil prices up and raising concerns over global supplies.

The S&P/ASX 200 index rose 0.2% to 8,809.8 by 0042 GMT.

The benchmark had closed 0.5% lower on Friday and posted its second straight weekly loss.

Energy stocks gained as much as 2.9% and were on track for their best day since July 14.

Washington conducted a ninth straight night of attacks over the weekend, and US allies Kuwait and Bahrain reported more Iranian strikes, further straining shipment traffic through the key Strait of Hormuz.

Santos and Woodside Energy climbed 1.6% and 1.9%, respectively, both marking their highest levels in more than a month.

Technology stocks fell 1.3%, hitting their lowest level in more than three weeks.

The decline came after the Nasdaq ended lower on Friday due to a pullback in stocks associated with the AI boom.

Xero and WiseTech Global lost 2.1% and 2.6%, respectively.

Miners were rangebound as weaker gold and copper prices competed with firm iron ore for dominance.

BHP added 0.4%, while Rio Tinto was largely flat.

Gold miners, which are part of the broader mining sub-index, fell 1% as bullion prices slipped after the escalating US-Iran conflict drove inflation worries and reinforced expectations for US interest rate hikes.

Evolution Mining hit its lowest in more than a month, losing 1.9%, while Northern Star Resources dropped 2.1% to touch a three-week low.

New Zealand’s benchmark S&P/NZX 50 index was down 0.2% at 13,661.71, with investors awaiting the second-quarter inflation report due on Tuesday for further direction.