Australian Shares Dip as Oil Prices Reach Seven-Week High

The Australian stock market declined on Tuesday as rising oil prices continued to weigh on investor and consumer confidence.

Oil prices surged after tit-for-tat strikes between the US and Iran, pushing Brent crude above $US98 a barrel for the first time since July 24.

Brent crude's seven-week high supported the local energy sector, with refinery operators Ampol and Viva advancing. However, the broader market fell due to concerns about inflation and debt levels.

Financials weighed heavily, dropping 0.9% in a broad-based sell-off, while all big four banks were in the red as housing market concerns continued to mount.