Australian shares tread water as Middle East conflict weighs on miners

Miners fall as oil prices surge

Australia's share market has started the week flat as renewed fighting in the Persian Gulf boosts oil prices.

Iran escalated its attacks on US bases in the Middle East during the session. It also says it has again halted traffic in the Strait of Hormuz.

The energy segment advanced 0.7% as Brent crude hovered above $US79 a barrel, with no end in sight to renewed hostilities between the US and Iran.

Miners were under renewed selling pressure after a brief reprieve on Friday as investors continued rotating into resurgent financial stocks, which have gained more than 6% since mid-June.

Gold producers were heavy, with the precious metal slipping to $US4,054 ($A5,851) an ounce during the session, dragging the sub-index 1.9% lower.

Battery minerals and rare earths producers also sold off.

Dollar dips, earnings season looms

The Australian dollar is buying 69.29 US cents, down from 69.50 US cents, as safe haven buyers retreat to the greenback.

Looking ahead, some big global names will deliver mid-year earnings this week including JPMorgan Chase, Bank of America, Netflix, Taiwan Semiconductor and Johnson & Johnson.

The local earnings season kicks off on July 29 with Rio Tinto's half-year results.