Australian shares extend losses on MidEast jitters, banks and miners top drag

Australian shares fell for a fourth straight session on Thursday, with heavyweight miners and banks leading declines after US President Donald Trump said the initial agreement signed with Iran to resolve the Middle East conflict was “over”. The S&P/ASX 200 index lost 0.8% to 8,715 by 0005 GMT and was on track for its weakest session in nearly three weeks. The benchmark is now less than 450 points away from confirming a technical correction. Overnight, Trump said he was not interested in further talks with Iran and warned that Washington could carry out additional strikes, dampening hopes for a diplomatic resolution to the Middle East conflict. Risk sentiment was further hurt after the International Monetary Fund cut its 2026 growth forecast for Australia and warned that the Middle East conflict could weigh on global growth this year. In Sydney, miners fell 1.8% to hit their lowest in nearly three months and were set for a fourth straight session of losses, after copper prices retreated. Heavyweights BHP and Rio Tinto lost 1.7% and 3.9%, respectively. The 14-day relative strength index for Rio has fallen to 25.1, placing the stock in oversold territory, while Fortescue and BHP are hovering around the boundary. Gold stocks slid 2.5%, putting the sub-index on track for a fourth straight session of declines, as bullion prices weakened. Financials fell 0.9% after climbing to their highest in about two months on Wednesday. The “Big Four” banks lost between 0.6% and 1.7%. Healthcare stocks lost 0.6% and were set for their weakest session in nearly two weeks. Limiting losses, energy stocks advanced nearly 2% to hit their highest point in more than two weeks, as oil prices jumped. Oil majors Woodside Energy and Santos gained 1.8% and 1.9%, respectively. New Zealand’s benchmark S&P/NZX 50 index rose 0.1% to 13,681.04 after the central bank raised interest rates for the first time since mid-2023 on Wednesday and signalled that further increases were likely.