Australian Shares Slip from Record High

The S&P/ASX 200 slipped 0.6% to 9,148 on Tuesday, retreating from a record high in the previous session as escalating Middle East tensions triggered inflationary caution in Australia. RBA Governor Michele Bullock warned that an oil price shock linked to tensions involving Iran could reignite domestic price pressures, adding that recent strikes between Iran and the US were a timely reminder of how quickly global conditions can shift. The central bank unanimously lifted the cash rate by 25bps to 3.85% at its first 2026 meeting, marking its first hike since November 2023 amid renewed cost pressures in H2 2025. Energy stocks were mixed, with Woodside Energy falling 0.9% and Santos declining 0.6%, while Ampol rose 2%, Whitehaven Coal gained 3.3%, and Viva Energy added 2.6%. Gold miners also underperformed, with Newmont Corporation, Northern Star Resources and Evolution Mining falling between 3.6% and 4.2%.

The S&P/ASX 200 closed flat at 9,201 on Monday, regaining record highs after earlier losses as investors flocked to gold and oil stocks amid geopolitical uncertainty. Markets reacted to US and Israeli strikes on Iran over the weekend, following Tehran’s refusal to curb its nuclear program. Tensions escalated after reports suggested the attacks killed Supreme Leader Ayatollah Ali Khamenei, prompting fears of regional retaliation. Oil stocks Woodside Energy climbed 6.8% and Santos surged 6.7%, while gold producers Newmont Corporation up 5.7%, Northern Star Resources gaining 4.8%, and Evolution Mining adding 6.6%. Meanwhile, investors digested recently released economic data. Australia’s Monthly Inflation Gauge, compiled by the Melbourne Institute, fell 0.2% month-on-month in February, reversing a 0.2% rise in January and marking the first decline since August. Additionally, ANZ-Indeed Australian Job Ads rose 3.2% in January, easing from a revised 5.2% gain in December.

The S&P/ASX 200 fell 0.5% to 9,158 on Monday, retreating from record highs as global risk sentiment deteriorated amid escalating tensions in the Middle East. Geopolitical risks escalated after US and Israeli strikes on Iran over the weekend, following Tehran’s refusal to curb its nuclear program. Iran retaliated after the attacks reportedly killed Supreme Leader Ayatollah Ali Khamenei. Domestically, the manufacturing PMI was revised down to 51.0 in February 2026 from a preliminary reading of 51.5, marking the lowest level in four months and easing from 52.3 in January. Banking stocks led the declines, with Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corporation, and ANZ Group Holdings falling 2.7%–3.3%. In contrast, Woodside Energy and Santos jumped 5.7% and 6.4%, while gold miners Newmont Corporation, Northern Star Resources, and Evolution Mining rose between 4.8% and 6.4% on higher commodity prices.