SYDNEY, March 28, 2026, 04:14 AEDT.
Australian shares ended little changed on Friday, with the S&P/ASX 200 slipping 0.1% to 8,516.30 points, but still snapping a three-week losing streak with a 1.2% weekly gain. Investors stayed wary after Iran rejected a U.S. proposal to end nearly four weeks of war, and Kyle Rodda of Capital.com said, “If the war drags on, growth and inflation risks will compound and weigh on equities.” 1
That matters because the market is trying to trade through domestic inflation data that already looks dated beside the fresh energy shock. February consumer prices were flat on the month, annual inflation slowed to 3.7%, and core inflation, which strips out volatile items, held at 3.3%, but VanEck’s Russel Chesler said the numbers were “largely irrelevant now” as higher energy costs start feeding into transport, goods and services. 2
The Reserve Bank of Australia is feeling that squeeze too. Assistant Governor Christopher Kent warned this week that a longer conflict could hurt growth and unsettle inflation expectations, after the central bank raised rates for a second straight meeting this month to 4.1%. 3
Friday’s sector tape showed how narrow the support was. Energy rose 0.88% and materials added 0.18%, while information technology fell 1.53%, financials slipped 0.21% and the gold stock index lost 1.5%; Santos gained 1.3%, Fortescue rose 1.7% and Rio Tinto added 1.5%. 4
The close also hid a rougher start. Early in the session the ASX 200 was down 0.4%, with banks, miners and gold stocks under pressure; BHP was off 0.6% at that stage, while Santos was one of the few big stocks holding in positive territory. 5
The risk still runs through oil. Brent crude was up 2.45% at $110.66 a barrel on Friday, and Macquarie analysts said prices could hit $200 if the war drags into the end of June. Priyanka Sachdeva of Phillip Nova said “oil is trading on war longevity, not just headlines.” 6
Wall Street stayed under pressure too. The Nasdaq fell into correction territory — more than 10% below its recent high — as oil climbed and investors worried the conflict could keep inflation elevated and delay lower interest rates. 7
For now, the Australian market has won a pause, not much more. A weekly rebound helps. It does not answer whether oil, rates and war risk are done pushing prices around.
