Australian shares fall as US-Iran peace talks collapse
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AUSTRALIAN shares fell on Monday with miners outweighing gains in energy stocks, as investor appetite for risk assets weakened after peace talks between the US and Iran broke down and the US Navy prepared a blockade of the Strait of Hormuz.
The S&P/ASX 200 index declined 0.4 per cent to 8,925.60 by 0038 GMT after a 4.4 per cent gain last week.
Markets remained on edge as uncertainty lingered over when the US–Iran war would end after weekend talks ended without a breakthrough, with US President Donald Trump later saying he believed Iran would continue negotiations.
Meanwhile, there appears to be few signs of a resumption in Middle East energy flows, with Trump saying Washington would begin blockading the Strait of Hormuz, while Iran warned that any approaching military vessel would be treated as violating the ceasefire.
In Sydney, energy was one of the two advancing sectors, rising 3.3 per cent after oil prices jumped above US$100 a barrel. Woodside and Santos climbed between 2 per cent and 3 per cent.
Shares of Viva Energy rose more than 4 per cent, even as the company flagged a US$17.5 million impairment charge after a regulatory review.
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Gold stocks slumped 3.5 per cent, dragging down the broader mining index 0.9 per cent, as bullion prices fell more than 2 per cent, pressured by a stronger US dollar. Evolution Mining and Northern Star Resources fell more than 4 per cent each.
Financials slipped 0.2 per cent after a four-session rising streak, with the big four banks down between 0.2 per cent and 1.1 per cent.
With the Middle East war raising inflation risks and clouding the cash rate outlook, consumer discretionary and real estate stocks lost 1 per cent and 0.3 per cent, respectively.
Among individual stocks, Monash IVF jumped 16.5 per cent after it received a higher buyout offer from a consortium.
In New Zealand, the benchmark S&P/NZX 50 index fell 1.1 per cent to 13,032.28.
Shares of a2 Milk dropped 17.3 per cent after the company cut its fiscal 2026 profit forecast, saying temporary supply chain disruptions would affect availability of its China-label infant milk formula.
Fonterra shares rose 7.2 per cent after the company appointed a new chief executive. REUTERS
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