Australian stocks fall 3.2% as oil prices soar
Australian stocks fell 3.2% on Monday, with the S&P/ASX 200 slipping to 8,571.1, down from its recent record high.
The big drop comes after US and Israeli strikes on Iran pushed oil prices above $100 a barrel, raising concerns about higher living costs across Australia.
Australians could soon feel the pinch at the pump
Rising oil prices mean Australians could soon feel the pinch at the pump and on their energy bills.
With miners, airlines (Qantas dropped 9%), and banks all taking hits, there's a ripple effect through jobs and everyday expenses.
Currency markets were volatile.
Investors are cautious
It all boils down to uncertainty from Middle East conflict and worries about disrupted oil supplies.
Investors are cautious: if inflation keeps rising because of expensive energy, the Reserve Bank might hike interest rates again, which could, in turn, dampen spending and economic growth.