2026.03.0900:12:19UTC+00Australian Shares Slump to Over 2-Month Low

Australia’s S&P/ASX 200 slumped 3.3% to 8,557 on Monday, deepening last week’s losses and marking its lowest close since December 2025. The decline came as intensifying tensions in the US–Israeli conflict with Iran weakened global risk sentiment and heightened concerns over higher oil prices and inflation. A prolonged disruption in the Strait of Hormuz — a critical chokepoint for global oil shipments — could create fuel supply challenges for Australia. Energy Minister Chris Bowen noted that the country’s fuel reserves currently cover 36 days of petrol, 34 days of diesel, and 32 days of jet fuel, significantly below the International Energy Agency’s recommended 90 days. At the same time, RBA Governor Michele Bullock cautioned that rising energy costs could unanchor inflation expectations and potentially necessitate further interest rate increases. Mining stocks led the sell-off, with BHP Group, Rio Tinto, and Fortescue losing between 2.9% and 5.4%, while major banks CBA, NAB, Westpac, and ANZ Group declined 3.1% to 3.9%.