The S&P/ASX 200 fell 0.6% to 8,569 on Monday, extending losses from the previous week as escalating tensions in the Middle East continued to raise concerns about global growth and inflation. Over the weekend, the US struck military targets near Kharg Island, Iran’s main oil export hub, and warned it could expand attacks on energy infrastructure if shipping through the Strait of Hormuz is disrupted. The developments pushed oil prices higher and heightened fears of supply shocks that could reignite inflation, increasing expectations of further interest rate hikes from the central bank. The RBA is set to deliver its monetary policy decision on Tuesday, with markets expecting a back-to-back rate hike that would lift the cash rate to 4.1%. Materials stocks were among the main drags, with mining giants BHP Group, Rio Tinto, and Fortescue falling 0.9% to 2.9%. Gold producers also declined, with Newmont Corporation, Evolution Mining, and Northern Star Resources down 3.3% to 5.6%.
