Shares drop and oil surges as US, Iran trade strikes
Australian shares had their worst day since mid-March after a renewed escalation in the US-Iran conflict dampened hopes for a peace deal and sent oil prices higher.
The S&P/ASX200 fell 124.8 points on Thursday, down 1.43 percent to 8,592.9 points, while the broader All Ordinaries index fell 125.6 points, or 1.4 percent, to 8,819.6 points.
Gold fell to a two-month low and oil rose more than three percent after Iran’s Revolutionary Guard claimed it targeted a US military base and Kuwait reported it had intercepted enemy missiles and drones.
The two largest sectors of the local stock market suffered some of the heaviest losses on Thursday; There was a 2.4 percent decrease in basic materials and a 1.6 percent decrease in financials at the close.
The Australian dollar is buying 71.17 US cents at 71.46 US cents at 5pm on Wednesday.
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