AAP Finance

Aussie shares sink as oil price hits $US116 a barrel

Mar 30, 2026

Markets aust — Australia's benchmark index has slipped to a six-day low, pressured due to war in the Middle East. -AAP Image

The Australian share market has sunk again after oil rose to near a four-year high, amid signs another strategic Middle East waterway could become an energy choke point.

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Around noon on Monday, the benchmark S&P/ASX200 index was down 116.3 points, or 1.37 per cent, to a six-day low of 8,400.0, while the broader All Ordinaries had fallen 118 points, or 1.35 per cent, to 8,596.6.

The losses came as hundreds of US Special Operations forces arrived in the Middle East for a possible ground offensive, the latest indication that the war is unlikely to wind down anytime soon.

Yemen's Houthi forces entered the war over the weekend, firing a salvo of missiles at "sensitive Israeli military sites" and saying they would continue fighting until Israel's aggression came to an end.

All eyes were on the Strait of Bab al-Mandeb near Yemen, which leads to the Red Sea, for signs whether the Houthis would seek to close that key shipping route the same way that Iran has blocked the Strait of Hormuz.

Brent crude surged to $US116.50 a barrel, a price it last traded at in mid-2022 amid the COVID reopening.

"Basically, everything is an oil trade and everyone is an oil trader right now," said Capital.com analyst Kyle Rodda.

Seven of the Australian exchange's 11 sectors were lower at midday and four were higher.

The tech sector was the biggest mover, dropping 4.8 per cent, as Wisetech Global retreated 6.6 per cent, Block subtracted 6.7 per cent and Xero fell 6.0 per cent.

The financial sector fell 3.2 per cent, with CBA down similarly, ANZ and NAB both declining 3.0 per cent, and Westpac sliding 5.1 per cent.

But the energy sector was up 2.9 per cent, with Woodside advancing 2.6 per cent, Santos adding 2.1 per cent and Whitehaven Coal rising 6.8 per cent.

The heavyweight mining sector was up 0.8 per cent, with Rio Tinto adding 3.4 per cent, Fortescue climbing 2.4 per cent and BHP basically flat at $50.40.

Gold miners were mixed as the precious metal changed hands at $US4,488 an ounce.

Northern Star had added 3.9 per cent but Evolution had dipped 0.7 per cent, while Greatland Resources had climbed 7.9 per cent on an updated resource statement.

The Australian dollar fell to a two-month low against its US counterpart, trading at 68.57 US cents, from 68.98 US cents around 5pm on Friday.