The S&P/ASX200 rose 12.6 points by midday, up 0.18 per cent, to 8,644.8, as the broader All Ordinaries gained 12.4 points, or 0.14 per cent, to 8,863.9.
Global equities remain under pressure after brent crude spiked above $US100 a barrel overnight, as Iran and the United States, alongside Israel, ramped up attacks on oil refineries and transport this week.
"Almost everything in the markets right now can be boiled down to the energy crisis and it's very likely that this will continue until the war ends," Capital.com market analyst Kyle Rodda said.
The supply shock was forcing investors to lower growth expectations and brace for higher inflation.
"Heading into a slew of central bank decisions next week, the markets are pricing in a world where rates are higher than they would otherwise have been - and heading in a far more uncertain direction," Mr Rodda said.
Energy stocks continued to soar, up 1.3 per cent, tracking with strength across oil, gas, coal and uranium stocks.
Oil and gas giants Woodside and Santos have each rocketed more than 10 per cent higher since the US and Israel launched air strikes on Iran nearly two weeks ago.
Ampol shares gained 1.8 per cent as Energy Minister Chris Bowen flagged plans to release an extra 800 million litres of petrol and diesel from domestic reserves, a day after relaxing fuel quality standards for the next 60 days.
A rebound for banks was helping the bourse keep its head above water on Friday, but the local market remains on track for its worst fortnight since June 2022, when spiralling inflation and a grim outlook for interest rates prompted fears of a global recession.
Commonwealth Bank and NAB led the big four banks higher, as the heavyweight financials sector gained 1.2 per cent, putting it on track for a relatively flat week.
Mining stocks tumbled 1.4 per cent on Friday and are on-track for a more than four per cent slump since Monday, under pressure from higher fuel cost projections and gold miners fading as safe haven buyers turned to the greenback.
BHP fell 1.9 per cent to around $50, as China's state-run steel iron ore buyer expanded a ban on one of the miner's products.
Iron ore futures surging to two-month highs, which helped push competitors Rio Tinto (+3.3 per cent) and Fortescue (+5.6 per cent) higher.
Northern Star, the ASX's biggest gold miner, plummeted more than 15 per cent after flagging its second production downgrade for 2026.
The precious metal itself slipped to $US5,108 ($A7,211) an ounce, as the All Ordinaries gold sub-industry slipped 4.4 per cent.
Already beaten-down health care stocks were under pressure again, the sector dipping 0.9 per cent to almost seven-year lows.
In company news, Qantas shares edged higher as it settled a class action for $105 million over flight credits issued during the COVID-19 pandemic, subject to Federal Court approval.
Collins Foods shares edged lower after the KFC operator agreed to pay up to $9 million to settle its own class action relating to 10-minute work breaks, while making no admission of liability over alleged infringements.
The Australian dollar is buying 70.87 US cents, down from 71.22 US cents on Thursday at 5pm.
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