Australian shares are hurtling towards their seventh fall in eight sessions as investors have bought bonds and gold on worries around Israeli military action in the Middle East.
Oil surged almost 3 per cent to take Brent crude futures above $US90 a barrel on multiple reports Israel had bombed Iranian military targets.
“Iran produces about 3 million barrels of oil today, about 3 per cent of global oil supplies mainly to China and Asia, and in the event of a full-blown war Iran could block the Strait of Hormuz which carries around 20 million barrels of oil a day,” said Shane Oliver, the chief economist at AMP.
“Markets are twitchy and the Middle East is complicated. Israel always warned they would do something, it might blow over; but if it’s significant, we would expect Iran to retaliate, so markets are worried at a time when they’ve become vulnerable.”
Gold topped $US2400 an ounce as a safe-haven asset. The Australian dollar…
