The Australian share market kicked off the week in the red, as escalating tensions in the Middle East unsettled investors and sent oil prices sharply higher.
The S&P/ASX 200 Index finished 30.6 points or 0.4% lower at 8,474.9, with eight of 11 sectors retreating, led by declines in Materials and Industrials.
The market reaction followed United States airstrikes on three key Iranian nuclear sites, which sparked fears of retaliation from Tehran.
Mining stocks were hit hard as BHP dipped 1.6% and Fortescue Metals lost 1%, while Rio Tinto eased 0.3%.
Technology and healthcare sectors also weighed, with WiseTech Global down 1%, TechnologyOne falling 0.9%, and Pro Medicus shedding 1.6%.
On the upside, energy stocks gained ground as Brent crude hit fresh five-month highs of $US81.40 a barrel.
Ampol added 0.5%, Santos gained 1%, and Viva Energy lifted 4.4%.
Financials bucked the trend, rising 0.4% overall as Commonwealth Bank rose 1% to refresh record highs at $184.35, while Macquarie and Westpac added 0.3% and 0.6%, respectively.
In corporate news, Adairs plunged 20.5% after warning of weaker full-year earnings, despite stronger promotional sales.
Metcash, on the other hand, jumped 2.7% after reporting a better-than-expected result, despite a 2.4% dip in underlying net profit to $275.5 million.
On the bond markets, 10-year and 2-year yields ticked up 0.4% and 0.2% to 4.224% and 3.287%, respectively.
