ASX Slumps Below 9000 as Oil Prices Surge

The Australian sharemarket fell below 9000 points on Tuesday, following a decline in European stocks due to rising oil prices. The S&P/ASX 200 index dropped by 60.40 points or 0.7% at 8950.50 as of 10:53am AEST.

The increase in oil prices is attributed to the escalating war in the Middle East, with Brent crude approaching $US98 a barrel. This has added to the already challenging inflationary environment, which may force central banks like the Federal Reserve and Australia's Reserve Bank to raise interest rates further.

The big four banks, tech companies, and mining stocks were among those that struggled, with Commonwealth Bank shares falling 0.9%, National Australia Bank and Westpac dropping 0.5% each, and ANZ Bank losing 1.2%. BHP and Rio Tinto were down 0.3% and 0.9%, respectively, despite copper reaching its highest-ever price on the London Metal Exchange.