The Australian sharemarket closed slightly lower on Wednesday as gains in energy stocks were offset by weakness across telecommunications and materials sectors following renewed Middle East tensions and a surge in oil prices.
The S&P/ASX 200 Index fell 18.8 points, or 0.2%, to 8,785.1, despite six of the benchmark's 11 sectors finishing higher.
Telecommunications stocks led declines, with Telstra falling 3.0%, while REA Group declined 0.7%, Seek dropped 0.8%, and TPG Telecom eased 0.8%.
The Materials sector also weighed on the broader market. BHP Group fell 2.3% after unions began industrial action that could disrupt operations at the company's export terminal in Port Hedland.
Rio Tinto declined 2.6%, while Fortescue edged 0.1% higher.
Gold miners also finished lower amid ongoing geopolitical uncertainty, with Northern Star Resources falling 1.7%, Evolution Mining declining 4.2% and Newmont losing 1.0%.
Greatland Resources dropped 2.8% after appointing former Northern Star executive Nick Strong as chief operating officer.
Technology stocks also dragged on the index, with WiseTech Global falling 7.3% after giving back some of its recent gains.
Xero declined 1.2%, TechnologyOne fell 0.9%, and NEXTDC dropped 1.0%.
The Energy sector led gains after Brent crude surged following the U.S. announcement that it had launched "powerful strikes" against Iran in response to attacks on commercial shipping.
Oil and gas stocks rallied, with Santos surging 5.8%, Woodside Energy up 3.2%, Beach Energy adding 2.4%, and Viva Energy closing 3.3% higher.
Among individual companies, ResMed slipped 0.8% after agreeing to sell its MatrixCare software business to private equity firm Frazier Healthcare Partners for US$490 million ($707.5 million).
Adairs declined 1.3% after warning it expects to report an A$43 million loss for fiscal 2026, driven by an impairment charge of up to $68 million related to its Focus on Furniture business following weaker earnings.
On the bond markets, Australian government yields moved higher, with the 10-year yield rising 0.9% to 4.883% and the two-year yield increasing 0.6% to 4.5%.
