Australian shares have fallen as the deepening Middle East conflict heightens fears around spiralling energy costs and the likelihood of further interest rate hikes.
The S&P/ASX200 dropped 124.3 points on Tuesday, down 1.35 per cent, to 9,076.6, while the broader All Ordinaries lost 133.4 points, or 1.41 per cent, to 9,297.2.
Energy stocks were the only sector to finish clearly higher, as basic materials ran into profit-taking and stocks linked to consumer spending were hit by a mix of headlines that rattled confidence.
The Australian dollar is buying 71.04 US cents, up from 70.77 US cents on Monday, edging higher after bets on interest rate rises firmed after a speech from Reserve Bank governor Michele Bullock.
