S&P/ASX 200 drops as Australian shares hit 10-month low as Middle East war drives inflation woes; check top gainers and losers

Australian Share Market ASX 200: Australian shares slid to a 10-month low on Monday as escalating threats between Washington and Tehran, signalling the conflict could drag on for weeks, pushed oil prices higher, stoking global inflation fears and ‌keeping investors cautious.

The S&P/ASX 200 closed lower Monday, dropping 62.50 points or 0.74% to 8,365.90 and setting a new 100-day low. its lowest level since late May 2025. The bottom-performing stocks in this index were CATALYST METALS LIMITED and ORA BANDA MINING LTD, down 14.44% and 11.02%, respectively.

The benchmark has lost more than 9% this month, which is on track to be the worst since May 2022, when surging inflation and rate-hike fears shook markets after Russia's invasion of Ukraine.

ASX 200: Top gainers and losers

On the S&P/ASX 200, Eagers Automotive Limited (APE) led the top five gains, closing at 21.420, up 1.230 or 6.092 per cent. Premier Investments Limited (PMV) followed, finishing at 12.660, rising 0.680, or 5.676 per cent. AUB Group Limited (AUB) ended at 23.800, gaining 1.220, or 5.403 per cent, while Karoon Energy Ltd (KAR) closed at 2.060, up 0.090, or 4.568 per cent. Life360 Inc. (360) rounded out the gainers, finishing at 18.810, up 0.730, or 4.037 per cent.

On the downside, Catalyst Metals Limited (CYL) recorded the steepest decline, closing at 5.630, down 0.950 or 14.438 per cent. Ora Banda Mining Ltd (OBM) fell to 1.050, shedding 0.130, or 11.017 per cent, while Greatland Resources Limited (GGP) ended at 9.120, down 0.990, or 9.793 per cent. Bellevue Gold Limited (BGL) closed at 1.255, losing 0.125 or 9.058 per cent, and IperionX Limited (IPX) slipped to 3.210, down 0.310 or 8.807 per cent.

S&P/ASX 200 set for its weakest March since 2020

The index is also set for its weakest March since the COVID-driven selloff in 2020, with its relative strength index falling below 30 for the first time since late ⁠November, signalling oversold ‌conditions, as reported by news agency Reuters. The benchmark has fallen over 10% from its record high of 9,202.90 points that it hit on February 26.

Iran said on Sunday it would strike the energy and water systems of its Gulf neighbours if Washington attacked its electricity grid, underscoring the growing ‌risk to regional infrastructure as the war enters its fourth week.

That added to pressure on a market already rattled by the Reserve Bank of Australia's hawkish stance last week, when ⁠it warned conflict-driven increases in fuel prices could worsen inflation if sustained. Investors now await February inflation data due Wednesday.

S&P/ASX 200: Top-performing sectors

Sectors ended mixed. 6 of 11 sectors were lower along with the S&P/ASX 200 Index. Utilities were the best-performing sector, gaining +1.46% and +3.93% for the past five days. Rate-sensitive financials slipped 0.6% to a two-week low, with the big four banks losing between 0.8% and 1.8%.

Miners fell 2.6%, with Rio Tinto and BHP dropping 1.7% and 0.8%, respectively. Gold miners fell in tandem, down 7.3% to their lowest level since late September 2025 after bullion prices fell. Bucking the trend, energy stocks added 1.2% on surging oil prices.