Australia’s S&P/ASX 200 tumbled 3.3% to 8,557 on Monday, extending last week’s losses and hitting its lowest level since December 2025, as escalating tensions in the US–Israeli conflict with Iran dampened global risk appetite and stoked fears of higher oil prices and inflation. A prolonged disruption in the Strait of Hormuz, a key global oil transit chokepoint, could pose supply challenges for Australia. Energy Minister Chris Bowen said the country holds fuel reserves equal to 36 days of petrol, 34 days of diesel, and 32 days of jet fuel, well below the International Energy Agency’s recommended 90 days. Meanwhile, RBA Governor Michele Bullock warned that rising energy prices could unanchor inflation expectations and force interest rates higher. Mining stocks led losses, with BHP Group, Rio Tinto, and Fortescue falling 2.9% to 5.4%, while major lenders CBA, NAB, Westpac, and ANZ Group dropped 3.1% to 3.9%.