The S&P/ASX 200 slipped 0.1% to close at 8,617 on Friday and ended the week down 2.6%, its second consecutive weekly decline, as escalating oil prices linked to the Middle East conflict stoked inflation concerns. Crude surged after Iran stepped up attacks on oil and transport infrastructure across the region, heightening fears of supply disruptions. The resulting rise in fuel costs intensified domestic inflation worries and pushed markets to price in a roughly 78% chance of a rate hike at the Reserve Bank of Australia’s March 17 meeting.
Among individual stocks, gold producer Northern Star was the biggest drag, tumbling 18.8%—its steepest one-day drop since late March 2020—after warning it may struggle to meet its annual production guidance. BHP Group slipped 1.7% as China expanded its iron ore ban amid a protracted month-long contract dispute. In contrast, Rio Tinto gained 3.1% after Glencore rekindled expectations of a potential transaction. Financials rose 1%, helping to offset broader market weakness, while energy stocks also finished in positive territory.
