16.03.202600:04:32UTC+00Australian Shares Open the Week Lower

The S&P/ASX 200 fell 0.6% to 8,569 on Monday, extending the previous week’s losses as escalating tensions in the Middle East continued to fuel concerns over global growth and inflation. Over the weekend, the US struck military targets near Kharg Island, Iran’s main oil export hub, and warned it could broaden attacks on energy infrastructure if shipping through the Strait of Hormuz is disrupted. These developments pushed oil prices higher and intensified fears of supply shocks that could reignite inflation, bolstering expectations of further central bank interest rate increases. The RBA is set to announce its monetary policy decision on Tuesday, with markets pricing in a second consecutive rate hike that would lift the cash rate to 4.1%. Materials stocks were among the heaviest drags, with mining majors BHP Group, Rio Tinto, and Fortescue losing between 0.9% and 2.9%. Gold miners also retreated, with Newmont Corporation, Evolution Mining, and Northern Star Resources down between 3.3% and 5.6%.