Oil Prices Spark Global Market Selloff Amid Escalating Middle East Tensions

The Australian sharemarket fell at the open as Wall Street declined due to rising oil prices and concerns about inflation. The S&P/ASX 200 dropped 17.1 points, or 0.2 per cent, to 9066.7 in early trade.

On Wall Street, the Dow Jones Industrial Average fell 1.3 per cent, while the Nasdaq composite sank 1 per cent. The S&P 500 also declined, its fourth loss in five days.

The rise in oil prices was partly driven by US President Donald Trump's latest threat to Iran, which sent worries about inflation and yields higher.

Analysts had cautioned that the Treasury Department's recent move to double its planned purchases of longer-term Treasurys may be short-lived, given the small size of the purchases relative to the overall size of the market.