13.03.202600:33:42UTC+00Australian Stocks Set for 2nd Weekly Drop

The S&P/ASX 200 slipped 0.3% to around 8,600 in Friday morning trade, extending the previous session’s losses and putting the benchmark on track for a second straight weekly decline. Sentiment remained fragile as surging oil prices, driven by the ongoing war in the Middle East, stoked inflation concerns and weighed on global risk appetite.

Iran’s new Supreme Leader vowed to keep the Strait of Hormuz effectively closed and warned that Tehran could widen the conflict if attacks by the US and Israel continue. At the same time, President Trump stated that preventing Iran from developing nuclear weapons is a higher priority than the economic impact of rising oil prices. These developments prompted markets to bring forward expectations of a rate increase by the RBA, potentially as early as next week, in an effort to contain mounting cost‑of‑living pressures.

Miners and gold producers remained under pressure. Heavyweights BHP and Rio Tinto fell 2.5% and 1.4%, respectively, while Northern Star tumbled 14% after warning it may struggle to meet its FY26 gold production guidance. By contrast, financials staged a rebound, and energy companies continued to benefit from elevated fuel prices.