Australian shares edged lower on Friday, as heightened geopolitical tensions in the Middle East weighed on investor sentiment despite strength in energy and utility stocks.
The S&P/ASX 200 Index fell 6.9 points, or 0.1%, to close at 8,786.5, with six of the 11 sectors finishing in negative territory.
For the week, the index posted a decline of 1.8%.
Market sentiment was influenced by comments from President Donald Trump, who intensified rhetoric around the Strait of Hormuz while continuing to signal openness to securing an “everlasting” peace agreement in the region.
Trump said he had ordered the U.S. Navy to “shoot and kill” any boats laying mines in the strategic waterway.
In a separate development, the Pentagon confirmed it had conducted a “maritime interdiction” involving an Iran-linked tanker.
Energy and Utilities sectors led gains on the local bourse, both sectors rising more than 1%, supported by elevated oil prices amid ongoing supply concerns.
Among energy names, Woodside Energy added 2.6%, Santos lifted 1%, Beach Energy gained 0.4% and Viva Energy advanced 2.1%.
Utility providers Origin Energy, AGL Energy and Mercury NZ gained 2.6%, 2.9%, and 1.3%, respectively.
The Financial sector delivered a mixed performance. Commonwealth Bank rose 0.6%, ANZ added 0.3%, while National Australia Bank fell 0.2% and Westpac declined 0.3%.
The Materials sector capped broader market gains, with major miners trading unevenly. BHP edged 0.1% higher, while Rio Tinto slipped 0.2%. Fortescue fell sharply, dropping 5.7% after reporting quarterly production figures and unveiling a US$680 million investment in green energy.
Lithium and critical minerals stocks also saw notable moves. IGO plunged 17.9% after cutting guidance for spodumene production at its Greenbushes operation.
In contrast, Pilbara Minerals rose 1.6% after reporting a 52% increase in revenue, driven by higher lithium prices despite lower sales volumes.
Gold stocks found some support, with Newmont Corporation rising 0.7% after posting record quarterly earnings.
The technology sector came under pressure following overnight developments in the United States, where major firms announced job cuts while ramping up investment in artificial intelligence.
TechnologyOne fell 2.3%, and Life360 dropped 4.2%, while WiseTech Global edged 0.1% higher.
In corporate updates, Suncorp gained 4.5% after announcing the purchase of a five-year aggregate reinsurance cover and indicating that its underlying insurance trading ratio is expected to land toward the upper end of guidance.
On the bond markets, Australian government bond yields were mixed. The 10-year yield rose 0.04% to 4.979%, while the 2-year yield fell 0.6% to 4.693%.
