Australia’s share market has recorded its steepest two-day fall in almost a year as investors react to escalating conflict in the Middle East.
The benchmark S&P/ASX 200 has dropped 3.2% since Monday, wiping about $90 billion from the combined value of the country’s 200 largest listed companies.
Losses have been widespread across the market, with the 10 largest companies all falling by at least 1%.
Major stocks including ANZ Bank and mining giant BHP declined more than 3%.
Energy company Woodside was among the few large firms to hold steady, with traders anticipating higher gas prices if supply disruptions intensify.
The sell-off reflects global market concerns that a prolonged conflict in the Middle East could disrupt oil and gas supplies.
Higher energy prices are widely seen as a potential driver of inflation and could increase the likelihood of interest rate rises in Australia and overseas.
Financial markets have also responded by shifting capital toward the US dollar, while gold prices have declined, adding pressure on Australian gold mining stocks.
Earlier futures pricing suggested the ASX 200 could open more than 1.3% lower, tracking declines seen overnight on Wall Street.
Analysts at ANZ said markets are continuing to evaluate the potential inflation risks linked to energy market disruptions.
