The Australian sharemarket trimmed early losses to finish slightly higher on Monday, as investors weighed reports of renewed geopolitical tensions between the United States and Iran.
The S&P/ASX 200 Index rose 6.4 points, or 0.1%, to close at 8,953.3, with six of the 11 sectors ending the session in positive territory.
Energy stocks led the declines as volatility returned to oil markets. Sentiment weakened following reports that Iran may not participate in a second round of diplomatic talks, alongside news that the United States had seized an Iranian-flagged vessel in the Gulf of Oman.
Woodside Energy dropped 2.9%, Santos fell 1.3%, and Beach Energy declined 1.7%. Viva Energy slumped 9.1% as trading resumed after a halt triggered by a fire at its Geelong refinery.
The company said it expects to restart its residue catalytic cracking unit in the coming weeks and lift production to above 90% of capacity, while maintaining firm crude supply through to July.
Utilities also came under pressure, with Origin Energy down 1%, Mercury NZ falling 1.9%, and AGL Energy losing 2%.
Financial stocks were mixed. Commonwealth Bank gained 1.1%, Westpac rose 0.7%, while ANZ finished flat.
National Australia Bank fell 3.6% after forecasting A$706 million in credit impairment charges for the first half of fiscal 2026, citing the impact of ongoing geopolitical uncertainty. Its shares ended down 3.5%.
Major mining stocks closed lower, with BHP down 0.4%, Rio Tinto falling 0.7%, and Fortescue Metals slipping 0.3%.
Gold miners outperformed, supported by elevated bullion prices. Northern Star Resources edged up 0.3%, Evolution Mining gained 1.8%, and Newmont rose 2.1%.
Consumer-facing sectors provided support to the broader index. Consumer discretionary stocks led gains, with Tabcorp jumping 6%, Domino’s Pizza rising 1.3%, Wesfarmers advancing 2.4%, and Aristocrat Leisure adding 1.3%.
Consumer staples also moved higher, with Woolworths and Coles gaining 1.9% and 1.2% respectively. Treasury Wine Estates rose 2.2%, while Endeavour Group added 1.8%.
Among individual names, engineering group Worley declined 5.8% after warning that the Middle East conflict could reduce fiscal 2026 underlying earnings before interest, tax and amortisation by $30 million to $40 million due to project delays and slower contract awards.
On the bond markets, Australian government bond yields were lower. The 10-year yield fell 0.8% to 4.94%, while the 2-year yield held steady at 4.607%.
