Australian stock market: Worrying new strikes on Middle East gas plants send oil prices higher, hammer shares
The S&P-ASX200 index has fallen 1.6 per cent and is on track for its lowest close in four months.
Australian shares have been pummelled as escalating attacks on major gas facilities in the Middle East triggered a surge in oil prices and increased the threat of protracted pain at the petrol pump.
The S&P-ASX200 index plunged 1.7 per cent to close at a four-month low of 8497.8 points, despite a 5 per cent jump by the energy sector — one of only three winning sectors.
Woodside Energy added 7.2 per cent, while Yancoal rose 8.5 per cent.
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By continuing you agree to our Terms and Privacy Policy.Viva Energy skyrocketed 15.2 per cent, despite news that the consumer watchdog had launched an investigation into it — and three other fuel retailers — over allegations of anti-competitive behaviour regarding the availability of diesel in regional areas.
The market’s sharp retreat came after oil prices rose 4 per cent overnight to near $US100 a barrel or more on damaging Iranian retaliatory attacks on the world’s biggest LNG export plant in Qatar.
Iran earlier had warned of retaliation on regional oil and gas infrastructure after its own huge South Pars gas project was struck.
Qatar said its Las Raffan complex, which suspended LNG exports soon after the war erupted in late February, had suffered “extensive damage”.
The latest attacks jolted energy markets, with traders now fearful that damaged regional oil and gas production facilities that provide 20 per cent of the world’s energy needs could take years to resume pre-war levels.
Miners were the biggest losers on the ASX, tumbling a collective 4.8 per cent. Fortescue, BHP and Rio Tinto were all down about 3 per cent.
Originally published on The Nightly
