SYDNEY, March 20, 2026, 05:00 AEDT 1
Australian stocks slumped on Thursday, March 19, with the S&P/ASX 200 shedding 1.7% to close at 8,497.8—marking a close not seen in almost four months. A jump in oil, triggered by renewed strikes on Gulf energy facilities, sapped risk appetite. On Wednesday, the index had managed a 0.3% gain. 2
This drop landed only two days after the Reserve Bank of Australia raised its benchmark cash rate by 25 basis points to 4.10%. The central bank pointed to a surge in fuel prices—driven by the Middle East conflict—and warned of a “material risk” that inflation could remain above target longer than expected. 3
There’s another angle here. Government data puts Australia’s petroleum imports at 84% of demand last year. Diesel inventories are down to 30 days, Energy Minister Chris Bowen warned, putting farmers, miners, and freight at risk if the squeeze persists. 4
Energy stocks bucked the trend, leading the market with a 4.6% gain. Woodside Energy surged 7.2%, while Viva Energy soared 15.2%. Brent crude hovered near $112 a barrel late in Sydney. 5
Materials took the brunt of the hit. The sector dropped 4.93% on the day—now sitting over 19% off its March peak—according to IG analyst Tony Sycamore, who described it as “perilously close” to the 20% mark traders often call bear-market territory. BHP slid 3.35%, Rio Tinto lost 3.25%. 6
Banks and tech didn’t give investors much relief. The big four banks slipped between 0.6% and 0.9% in early trading, while the local tech index tumbled as much as 3.3%. According to U.S. strategist Art Hogan, oil has turned into the market’s main signal, with equities tracking crude prices in near lockstep—but in the opposite direction. 7
The local jobs data gave investors a fresh concern. February saw employment climb by 48,900, but part-time positions made up nearly all of the increase. Full-time roles actually dropped by 30,500. With more people entering or sticking around in the workforce, the unemployment rate nudged up to 4.3%. AMP economist My Bui described the numbers as “leaned slightly weaker” on headline indicators. 8
Sean Crick, who heads up labour statistics at the ABS, noted that in February, not as many people waiting to begin jobs actually entered employment, while the number of people remaining unemployed ticked higher. Hours worked slipped 0.2%, giving the report a softer tone than the headline jobs figure implied. 9
But energy remains the pivot. Central banks have shifted—war-driven inflation is now part of the discussion. As Saxo strategist Charu Chanana put it, investors are watching more than just headlines from the front lines; the real focus is now on “the plumbing of the global energy system.” The worry? A prolonged disruption could push markets from a selloff straight into stagflation: growth slows, prices keep climbing. 10
