Australian Share Market Set for Decline as Oil Prices Soar Amid Middle East Attacks

The Australian share market is expected to open lower on Friday due to renewed attacks in the Middle East driving oil prices higher, which could exacerbate inflation concerns and push long-dated US Treasury yields to multi-decade highs.

SPI indicators are pointing to a decline of about 32 points, or 0.4%, at the open, following Thursday's 0.7% fall in the S&P/ASX 200.

Energy stocks may receive some support due to Brent crude climbing above US$106 a barrel, but the broader effect of the oil surge is less constructive, as higher fuel costs threaten to keep inflation elevated and reinforce expectations that interest rates will remain high.