The Australian sharemarket ended flat on Monday as investors largely looked through the surging oil prices from fresh strikes between the US and Iran and the implications for the Strait of Hormuz.
The benchmark S&P/ASX 200 Index added just 2.5 points to 8808.50 after trading in a narrow band for much of the session. Five of the 11 index sectors finished in the green.
That’s despite Brent crude jumping 4.6 per cent to $US79.51 a barrel amid conflicting claims over the status of the Strait of Hormuz that raised fears about potential supply disruptions.
The Australian dollar fell 0.3 per cent to US69.30¢ as traders pivoted to the relative safety of the US dollar as the US strikes targeted Iran’s ability to disrupt shipping through the strait following Tehran’s attacks on US allies including Kuwait, Jordan and Qatar.
“Iran says Hormuz is closed. The US says traffic continues. Both statements are technically defensible, which is precisely why the market remains in an uneasy equilibrium, but an equilibrium nonetheless,” SPI Asset Management managing partner Stephen Innes said.
“Oil traders will now watch throughput rather than rhetoric … the current oil price still reflects confidence that neither Washington nor Tehran wants a full regional war.”
Energy stocks were among the strongest on the ASX as Ampol rose 4.2 per cent to $36.75 after it secured a new $400 million so-called delayed-draw subordinated notes facility backed by KKR’s private credit and insurance platforms.
Woodside Energy added 0.9 per cent to $29.32 and Viva Energy was up by 3.6 per cent to $2.33.
Financials also helped to limit losses as ANZ advanced 1.1 per cent to $36.46, National Australia Bank 1.1 per cent to $40.05, Westpac 1 per cent to $36.90, and Commonwealth Bank 0.7 per cent to $170.
Technology was the worst performer as Xero dropped 4.3 per cent to $70.24 after chief executive Sukhinder Singh Cassidy offloaded $2.2 million worth of shares last week to manage personal tax obligations. WiseTech Global fell 2 per cent to $33.32.
The latest escalation in the Middle East sent gold down 1.7 per cent to $US4050 an ounce, dragging on the mining sector. Northern Star slid 2.8 per cent to $19.90 and Evolution Mining 1.8 per cent to $11.42.
Stocks in focus
In company news, Karoon Energy jumped 2.1 per cent to $1.44 as it restarted production from its PRA-2 well at the Bauna Project after completing work to reconnect the well’s umbilical to the floating production vessel.
Resmed fell 4.9 per cent to $28.57 after Citi downgraded the company to “neutral” and reduced its price target from $38.50 to $34, saying weaker 2027 fiscal year earnings growth and near-term uncertainty could weigh on investor sentiment.
Genesis Minerals added 3.7 per cent to $5.88 after Regis Resources said it would match the former’s $5.6 billion takeover offer of Vault. Regis fell 0.9 per cent to $6.46 and Vault edged up 0.8 per cent to $4.91.
City Chic Collective rocketed 27.8 per cent to 6.9¢ after reporting stronger sales and almost a doubling in earnings for the 2026 financial year. Shares are still down 98 per cent from their COVID-19 high.
Kingsgate fell 12.8 per cent to $4.35 after it said a major mechanical failure had forced the shutdown of Plant 1 at its Chatree Gold Mine in Thailand, with the company assessing the impact on production guidance.
OOh!media advanced 4.1 per cent to $1.53 as it continues takeover talks with three private equity bidders after Pacific Equity Partners, I Squared Capital and Oaktree Capital Management reaffirmed their non-binding proposals, with the highest offer remaining at $1.65 a share.
This concludes our coverage for today. We’ll be back again soon to bring you more live markets news and expert analysis.
Source: https://www.afr.com/markets/equity-markets/asx-to-rise-though-gains-may-be-capped-by-trump-s-latest-iran-threat-20260712-p60eob