Australian shares fell on Thursday as escalating tensions in the Middle East unsettled investors after Iran claimed it had attacked a United States military base in response to fresh American strikes in the region.
The S&P/ASX 200 Index closed 124.8 points, or 1.4%, lower at 8,592.9, with eight of the benchmark’s 11 sectors finishing in negative territory.
The sell-off intensified during afternoon trade as concerns over a widening conflict between Iran and the United States dampened hopes for a broader peace agreement and reignited worries about inflationary pressures linked to higher energy prices.
The Materials sector led declines as gold miners came under heavy pressure following a sharp fall in spot gold prices to multi-month lows.
Northern Star Resources fell 7.5%, Evolution Mining dipped 7.8%, Newmont Corporation lost 7.2%, while Perseus Mining and Genesis Minerals recorded some of the steepest declines on the benchmark index, retreating 9.7% and 10.2%, respectively.
Major miners also weakened, with BHP down 1.2%, Rio Tinto falling 2.5%, and Fortescue finishing 1.2% lower.
The Information Technology sector also retreated, with Xero declining 2.6%, WiseTech Global down 1.5% and TechnologyOne retreating 3.1%.
Financial stocks added to market weakness, with Commonwealth Bank losing 2.1%, NAB falling 1.7%, ANZ dipping 1.9%, and Westpac finishing 1.3% lower.
Despite the broad sell-off, several stocks posted gains on company-specific developments.
SiteMinder rallied 8.6% to lead gains on the ASX 200 after announcing a partnership with hotel property management platform Mews.
Electro Optic Systems climbed 4.2% after appointing former Air Vice-Marshal Catherine Roberts and former Major-General Kathryn Toohey as non-executive directors.
Austal fell 7.8% after confirming Gene Miller as president of its U.S. business, formalising the position after he had served as interim president since February.
On the bond markets, Australian government bond yields moved higher, with the 10-year bond yield up 0.1% to 4.902%, while the two-year yield edged 0.04% higher to 4.573%.
