ASX Set for Modest Decline as Oil Prices Soar Amid Middle East Tensions
The Australian sharemarket is poised for a modest decline as rising oil prices and renewed US-Iran hostilities fuel inflation concerns.
Brent crude hit a six-week high overnight, with Iran threatening attacks on energy infrastructure across the Middle East in response to further US strikes on its assets.
Shipping through the Strait of Hormuz remains heavily constrained, reducing oil supplies from the region and increasing concerns about higher energy costs.
Copper touched a record level on the London Metal Exchange before trimming part of its advance, driven by expectations of supply shortages outside the United States, speculative fund buying, and a weaker US dollar.
Iron ore futures also moved higher, providing another positive signal for Australian miners within the ASX Metal & Mining Stocks category.