The local sharemarket has suffered its worst single-day loss in 11 months amid the widening war in the Middle East and a spike in oil prices.
The benchmark S&P/ASX200 index on Monday dropped 252 points, or 2.85 per cent, to 8,599, its lowest level since mid-December.
The broader All Ordinaries fell 2612.5 points, or 2.88 per cent, to 8,823.6.
The ASX200 fell even further shortly after midday, dipping as low as 4.4 per cent in intraday trading, but managed to steadily claw back a bit of ground in afternoon trading to finish near the highs of the day.
But the losses were still the ASX's worst since a 4.2 per cent plunge in April 2025 prompted by US President Donald Trump's intensifying trade war.
The rout left the ASX200 at its lowest level since mid-December and wiped out almost $90 billion in value from the index's market capitalisation.
On Monday afternoon the Aussie dollar was buying 70.11 US cents, down from 70.32 US cents on Friday afternoon.
Asian shares fall as oil soars
Earlier on Monday sharemarkets across Asia fell as oil prices surged. Brent crude soared 23 per cent to $US114 a barrel, the biggest daily gain since at least 1988, which came on top of a 28 per cent rise last week. US crude shot up a staggering 27 per cent to $US115.11, threatening to rapidly increase petrol prices.
With no sign of an end to hostilities in the Middle East and tankers still not daring to cross the Strait of Hormuz, investors were bracing for a long stretch of higher energy costs.
All of this was sobering news for Japan, a major importer of oil and gas, knocking the Nikkei down 7.5 per cent on top of a 5.5 per cent drop last week. South Korea's high-flying market fell closer to earth with a drop of 8.1 per cent, having already shed more than 10 per cent last week.
China is another big oil importer, though it also has a huge stockpile of crude; its blue-chip index fell 2.3 per cent. China on Monday said inflation had already picked up in February ahead of the current oil spike, with consumer prices rising 1.3 per cent on the year. This is not necessarily a negative development, given the country has long struggled with disinflation.
