ASX plunges $32 billion as oil surge reignites inflation fears
The ASX200 fell 1 per cent to 8819 points as oil prices spiked to $US101 a barrel amid Middle East tensions.
About $32 billion was wiped off Australian shares as escalating tensions in the Middle East raised concerns about energy supplies. Oil is now above $US101 ($140) a barrel.
The resources sector was hardest hit, falling nearly 2.5 per cent, with BHP down 3 per cent, Fortescue down 2.2 per cent, and Rio Tinto down 3.3 per cent. Despite copper reaching a record $US14,858 a tonne this week, analysts warn that higher oil could reignite global inflation and force central banks to tighten policy further, slowing economic growth and weakening demand for industrial metals.
- $32 billion
- Market loss
- 8819 points, down 1 per cent
- ASX200 close
- $US101 ($140 AUD) per barrel
- Oil price
- $US14,858.50 per tonne
- Copper record
Why it mattersRising energy costs add pressure to households facing sticky inflation, and investors worry the Reserve Bank may need to tighten policy further.
AustraliaAustralians who own shares or superannuation have seen their portfolios fall in value, and the prospect of higher interest rates could affect mortgages and savings.
✓ Claims checked against the source and corrected before publish. checked 12 h ago
