ASX 200 Ends Week Higher Despite Market Jitters

The S&P/ASX 200 edged down on Friday, finishing at 8,516 and marking the second straight session of losses as fears of a prolonged energy shock from the Middle East war drove borrowing costs higher. President Trump warned Iran must strike a deal with the U.S. or face continued military pressure, adding that seizing control of Iran’s oil remained on the table. Separately, the OECD warned Australia could face one of the highest inflation rates among advanced economies and severe fertiliser supply disruptions amid geopolitical risks. RBA also cautioned that the longer the conflict drags on, the greater the strain on households and businesses. Genesis Minerals (-4.2%), Greatland Resources (-4.0%), Macquarie Group (-2.3%), and Qantas Airways (-1.1%) led declines. Still, the market gained 1.0% for the week, its first rise in four, buoyed by bargain hunting and news that Trump will meet Chinese leader Xi Jinping in Beijing on May 14–15, a summit rescheduled from March 31.

Australian shares slipped 27 points, or 0.3%, to 8,498 in early Friday trade, extending losses from the prior day after U.S. markets posted their steepest drop since the Iran war began, driven by surging oil prices and uncertainty over talks. President Trump said he would extend his pause on threats to strike Iran’s energy infrastructure until April 6, citing a request from Tehran. Meanwhile, the OECD warned the conflict will test global resilience, with Australia exposed to higher rates and inflation. An RBA official also voiced concerns, noting prolonged tensions could lift inflation expectations. Consumer durables, non-energy minerals, and industrial services lagged, but gains in consumer non-durables and energy minerals capped further declines. Early losers included BHP Group (-0.7%), Northern Star Resources (-3.3%), Lynas Rare Earths (-3.2%), and Evolution Mining (-2.7%). Despite the weak open, the ASX is tracking its first weekly gain in four, up about 0.8% on bargain hunting.

The S&P/ASX 200 edged lower on Thursday, closing around 8,525 after two sessions of gains, as investor sentiment weakened amid a notable drop in U.S. stock futures following conflicting statements from Washington and Tehran over Middle East peace efforts. While the U.S. claimed talks are underway, Iran insisted it has no intention of negotiating. Locally, RBA Assistant Governor Christopher Kent warned that prolonged conflict could lift inflation and long-term expectations, stressing the need to prevent surging energy prices from unsettling inflation expectations. Miners slipped 0.6% on softer iron ore prices amid fears of production cuts in China’s Tangshan hub, while gold stocks fell 2.1%, led by Ramelius Resources (-3.3%). Financials were flat, with mixed moves among the big four banks. Energy stocks climbed 1.5% as oil prices advanced, amid solid gains from Woodside Energy (2.3%) and Yancoal Australia (1.1%).