Australian shares rose on Monday as rising oil prices lifted energy shares following an escalation in hostilities between the US and Iran over the weekend.
The S&P/ASX 200 index was up 28.9 points, or 0.3 per cent, at 8825.6 at 10:14am (AEST).
The opening followed a 3.1% jump in Brent crude prices to $90.82 a barrel in early Asian trading. Tehran said its ceasefire agreement with Washington had effectively collapsed after a weekend of tit-for-tat attacks, including strikes on ships transiting the Strait of Hormuz, raising fears of potential disruption to one of the world’s key oil shipping routes.
“The number of observed shipping movements through the Strait of Hormuz has fallen sharply since the US renewed its blockade of Iranian shipping through the Strait of Hormuz last week,” said Commonwealth Bank sustainability and energy economist John O.
On the ASX Woodside Energy And Ampol both grew by 2.7 percent, Santos added 2.2 percent and Karun Energy 4 percent.
Financial indicators also increased: Commonwealth Bank increase by 0.7 percent, National Australia Bank And ANZ both add about 0.3 percent and Westpac 0.1 percent.
Materials remained stable after strong sales last week. bottomhole pressure rose 0.6% after manufacturing data sparked a two-day sharp decline.
The latest rise in oil prices has brought gold back below $3,990 an ounce and gold miners are down. North Star fell by 1.1 percent, Evolution of Mining lost 1.5 percent and Genesis Minerals 1.8 percent.
Yug32 firmed 0.3% after the company beat 2026 production guidance at its key operations, with copper, Cannington and Sierra Gorda manganese assets beating expectations in the latest quarter. Quarterly sales jumped 15 percent.
The technology sector was the worst performer after the Nasdaq fell 1.4% on Friday. WiseTech Global decreased by 1 percent, Xero 0.9 percent and Megaport 0.4 percent.
Stocks in the spotlight
EQ Resources The stock rose 22.7% after Andrew Forrest’s investment firm agreed to acquire a 16.8% stake in the tungsten producer from Oaktree Capital Management, including 862.1 million shares and 35.6 million options.
Dark yellow rose 4.2% after securing $34 million of civil and concrete contracts for its flagship Tumas uranium project in Namibia, ahead of a final investment decision expected in the December quarter.
Fletcher Building added 1.5 percent after receiving up to NZ$60 million ($50 million) in government funding to keep New Zealand’s only cement plant running until at least 2040. In turn, Golden Bay Cement will invest at least NZD 150 million in the plant until 2040.
QBE Insurance added 1.3% as it said it would repurchase $500 million of subordinated floating rate notes issued in 2020 after receiving approval from the Australian Prudential Regulation Authority.
Perenty rose 0.2% after the company secured a six-month extension to its $95 million mining services contract at AngloGold Ashanti’s Iduapriem gold mine in Ghana, as well as an agreement to sell the majority of its mining fleet at the end of the contract for $30-40 million.