The Australian sharemarket finished lower on Friday as renewed Middle East tensions pushed oil prices back above US$100 a barrel, while concerns over artificial intelligence spending triggered another wave of selling across technology stocks.
The S&P/ASX 200 Index fell 66.7 points, or 0.8%, to close at 8,772.3, with seven of the benchmark's 11 sectors ending the session in negative territory.
For the week, the index slipped 0.3%.
The Information Technology sector led the declines after a weak session on Wall Street, where earnings from major U.S. technology companies reignited concerns over escalating AI-related capital expenditure.
Xero fell 4.5%, WiseTech Global lost 4.6%, TechnologyOne declined 3.9%, and NextDC dropped 3.6%.
The Materials sector also came under pressure as weakness across the major miners weighed on the broader market. BHP fell 2.9%, Rio Tinto lost 1.7%, and Fortescue declined 1%.
Gold producers retreated after spot gold prices extended declines. Northern Star Resources fell 3.9%, Evolution Mining lost 2.4%, and Newmont declined 1.5%.
Energy stocks bucked the broader market as oil prices rallied into triple digits following a sharp escalation in the Middle East conflict.
Crude prices surged overnight after U.S. President Donald Trump threatened further military action against Iran in response to Houthi attacks on two Saudi Arabian oil tankers in the Red Sea, raising concerns over potential disruptions to global energy supplies.
Santos gained 1.5%, Woodside Energy advanced 1.8%, and Beach Energy rose 2.3%.
Karoon Energy was the strongest performer on the ASX 200, soaring 10.8% as investors rotated into oil producers amid the rally in crude prices.
On the bond markets, Australian government yields edged higher, with the 10-year yield rising 0.4% to 5.089% and the two-year yield increasing 0.2% to 4.723%.
