The Australian sharemarket has declined at the open as escalating tensions in the Middle East cast doubt on when America and Iran can reach a deal to reopen the Strait of Hormuz, and as technology stocks came under more pressure on Wall Street.
The ASX/S&P 200 was down 80.1 points, or 0.9 per cent, to 8573.1 in early trade after the United States began a fresh round of strikes against multiple targets overnight in Iran. Seven of the local market’s 11 industry sectors were in negative territory. The Australian dollar was trading at US70.01¢.
The ASX declined at the open as escalating tensions in the Middle East cast doubt over when America and Iran can reach a deal to reopen the Strait of Hormuz. AP
The latest strikes highlight Trump’s growing impatience with stalled peace efforts after months of failed negotiations. They also suggest that the April ceasefire between the warring countries has effectively collapsed, despite the absence of a return to the large-scale bombing campaigns seen at the start of the conflict.
“We’re going to be attacking them, attacking them very hard,” Trump told reporters at the White House, before the latest strikes were announced. “We hit them hard yesterday, and we’re going to hit them hard again today.”
The escalation in the Persian Gulf sent oil prices higher, with Brent adding 2.3 per cent to $US95.22 and WTI up 2.8 per cent to $US92.55 in early trade in Asia, adding to overnight gains. Energy stocks in turn advanced in early trade on the ASX, with Yancoal rising 3.8 per cent, Woodside Energy up 2.2 per cent and Santos 2.4 per cent higher. Refiners Ampol and Viva Energy also climbed, adding 1.1 per cent and 0.2 per cent, respectively.