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Australian Equities Slump Amid U.S.–Iran tensions, Hawkish RBA

Australian stocks plunged 150 points or 1.7% to 8,761 in early Thursday trade, marking one of the sharpest single-day drops in recent weeks and extending losses for a third session. Markets lingered at their lowest in six weeks, with sentiment hit hard by the third straight drop on Wall Street overnight as mounting U.S.–Iran tensions pushed Brent crude above USD100/bbl, stoking inflation fears. Meantime, U.S. Treasury yields climbed ahead of key CPI data. Locally, rate concerns deepened after Deputy Gov. Andrew Hauser said the RBA will debate further tightening at its September meeting, citing persistent inflation risks, and Assistant Governor Sarah Hunter warned of limited tolerance for stronger price pressures. All sectors fell, led by healthcare, non-energy minerals, retail, and logistics. The four big banks fell between 1.4% and 1.8%, while BHP Group slid 3.2%. Other notable laggards included PLS Group (-3.6%), Lynas Rare Earths (-3.0%), Nextdc (-2.9%), and Regis Resources (-2.3%).

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