Australian shares have been pummelled as escalating attacks on major gas facilities in the Middle East triggered a surge in oil prices and increased the threat of protracted pain at the petrol pump.
The S&P-ASX200 index was 1.6 per cent lower at 8506.3 points at 7.35am and on track for its lowest close in four months. Energy was the only sector to gain ground, up 2 per cent as Woodside Energy added 3.5 per cent and Santos rose 3.4 per cent.
The market’s sharp retreat came after oil prices rose 4 per cent overnight on damaging Iranian retaliatory attacks on the world’s biggest LNG export plant in Qatar.
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Iran earlier had warned of retaliation on regional oil and gas infrastructure after its own huge South Pars gas project was struck.
Qatar said its Las Raffan complex, which suspended LNG exports soon after the war erupted in late-February, had suffered “extensive damage”.
The latest attacks jolted energy markets, with traders now fearful that damaged regional oil and gas production facilities that provide 20 per cent of the world’s energy needs could take years to resume pre-war levels.
The energy sector was the biggest winner — and one of only two sectors in the green — climbing almost 4 per cent. Woodside soared 5.4 per cent higher to $33.14 and Santos was up 3 per cent to $8.01.
Viva Energy skyrocketed 15.7 per cent, despite news that the consumer watchdog had launched an investigation into it — and three other fuel retailers — over allegations of anti-competitive behaviour regarding the availability of diesel on regional areas.
Miners were the biggest losers, tumbling a collective 4 per cent. Fortescue, BHP and Rio Tinto were all down about 3 per cent.
