The Australian sharemarket slipped from Monday’s record high as investors weighed the potential impact of rising oil prices amid escalating conflict in the Middle East.

The S&P/ASX 200 Index fell 0.3 per cent, or 24.50 points, to 9176.40 at 10.15 am AEDT, with eight of the 11 sectors weaker.

Energy stocks continued to limit the damage on the ASX with Brent climbing 6.7 per cent to $US77.74 per barrel at the open, while natural gas gained 3.5 per cent to $US2.96 as Qatar shut down liquefied natural gas production at the world’s largest export facility after it was targeted in an Iranian drone attack.

“The markets are treating the war between the US, Israel and Iran as a significant but relatively manageable and brief supply shock,” Capital.com senior market analyst Kyle Rodda said.

Ampol provided the main support as it added 2.2 per cent, along with uranium miners with Deep Yellow up 3 per cent and Paladin 2.8 per cent. Investors appeared to profit take ASX-listed oil stocks with Woodside down 0.5 per cent after an opening bump, while Santos fell 0.4 per cent and Beach Energy 0.4 per cent.

The major banks rebounded from losses on Monday as Westpac added 0.1 per cent, Commonwealth Bank 0.4 per cent, ANZ 0.9 per cent, and National Australia Bank 1.1 per cent.

Qantas extended losses for a second day as it fell 2.6 per cent. It came as UAE-based Etihad Airways and Emirates resumed a limited number of flights overnight. DroneShield climbed 1.6 per cent as it continued to benefit from conflict in the Middle East.

After strong gains on Monday from a bump in gold prices, miners retreated with Newmont down 3.7 per cent, Northern Star 3.3 per cent and Genesis Minerals by 1.2 per cent.

Stocks in focus

In company news, family tracking app Life360 rallied 4.3 per cent after its maiden annual net profit bettered analyst expectations, reporting net income of $US150.8 million ($212 million) for the full year ended December 31.

Treasury Wine Estates fell 0.2 per cent as French billionaire Olivier Goudet lifted his stake in the Penfolds owner to 7.13 per cent from 6.13 per cent previously.

Stockland retreated 1.2 per cent as it finalised documentation to establish a 50/50 partnership with EdgeConneX to develop, own and operate a portfolio of data centres across Australia.

Capstone Copper dropped 5.3 per cent with record revenue and adjusted EBITDA failing to meet market expectations.