Australian shares fell on Thursday, as oil prices surged into triple digits in the wake of the escalating Middle East conflict.
The S&P/ASX 200 Index declined 1.03%, or 92 points, to close at 8,819.40.
Overnight on Wall Street, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.5%, 0.6%, and 0.8%, respectively.
Brent crude oil futures jumped to trade around $101 per barrel. US President Donald Trump said he expected the conflict with Iran to end immediately after the US midterm elections in November. There was also an escalation in the conflict between Saudi Arabia and the Iran-aligned Houthis in Yemen.
Three-month copper futures on the London Metal Exchange rose to $14,858.50 per metric tonne, setting a new record. The copper futures set a fresh record in each of the previous three sessions.
On the domestic front, the Australian government released the Domestic Gas Reservation Bill 2026 for consultation, establishing Australia's first national domestic gas reservation scheme requiring gas exporters to supply a portion of their production to the domestic market and proposing reserving up to 20% of gas exports for domestic use.
Australia's consumer inflation expectations were unchanged at 4.9% in September, following a period of moderation between May and July, according to the Melbourne Institute Survey of Consumer Inflationary Expectations.
In company news, St Barbara (ASX:SBM) agreed to sell its remaining interest in the New Simberi project in Papua New Guinea to China-based Lingbao Gold Group for AU$410 million in cash, along with additional cash repayments and royalties.
GrainCorp (ASX:GNC) cut about 80 positions following a review of its agribusiness operating model, which identified opportunities to reduce duplication across the company's integrated East Coast of Australia network and corporate support functions.
Lastly, Eagers Automotive (ASX:APE) entered into a non-binding agreement to acquire a 50% interest in the automotive retail firm Zagame Automotive Group.