ASX loses $90bn as oil price spike over Middle East conflict fuels sell-off

Australian shares plunged on Monday, wiping about $90bn from the ASX after a sharp rise in oil prices tied to the Middle East conflict. The benchmark S&P/ASX 200 closed down 2.85% to fall below the 8,600 point mark, the single biggest one-day drop since the announcement of Donald Trump’s “liberation day” tariffs last year.

Global oil prices surged past US$100 a barrel shortly before the Australian share market opened for the week, stoking fears of a breakout in global inflation and prompting a broad sell-off. Ten of 11 sectors fell, led by the mining-heavy materials sector which closed down more than 5%, while the energy sector was the only one in the green.

“Fuel costs rise, war-risk insurance premiums increase, vessels slow or reroute, and freight rates climb – particularly across energy-dependent supply chains,” said Archival Garcia, chief executive of Melbourne freight technology company Fluent Cargo. The ASX did stage a recovery during afternoon trading after initially falling more than 4%.

Australia, Melbourne

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