The Australian share market closed lower on Friday after Israel's military strikes against Iran's nuclear program sites, but gold miners saw a significant boost. The S&P/ASX 200 fell 0.2 per cent to 8547.4, while gold prices surged 1.2 per cent to $3424.6 per ounce as investors fled to safe-haven assets.
Gold miners collectively added $7 billion in market value, driven by the spike in gold prices amid escalating Middle East tensions. The rally in gold offset losses in other sectors, with energy stocks also climbing as Brent crude jumped as much as 13 per cent to above $78 a barrel.
Woodside Energy closed 7.4 per cent higher at $25.20, and Santos lifted 3.7 per cent to $6.90. AMP's chief economist Shane Oliver warned that the oil price spike could flow through to Australian petrol prices, potentially adding 12 cents per litre if sustained.
Analysts noted that a broader escalation could push oil prices toward $100 per barrel, while de-escalation might bring them back below $70. The US and Iran are expected to meet in Oman on Sunday to discuss Iran's nuclear program, which could influence market movements.
In other news, the Financial Services Institute of Australasia (FINSIA) is proposing a strategic alliance with the Chartered Institute for Securities & Investment (CISI), which would see its members join CISI later this year. Some members have expressed concerns about the move and FINSIA's financial performance, citing losses exceeding $30 million since 2008.
