SYDNEY, March 25, 2026, 04:20 AEDT
- The ASX 200 ended Tuesday up 0.2% at 8,379, giving back nearly all of an early surge that had seen gains around 1.5%.
- Mining stocks gained 2.8%. Santos, on the other hand, dropped 2.6% after halting Darwin LNG exports.
- Oil held above $100 a barrel, with diesel prices still climbing—investors remained on edge.
Australian stocks broke their three-day slide on Tuesday, the S&P/ASX 200 closing 0.2% higher at 8,379. Early gains faded by the bell, but miners provided the bulk of support.
The index’s gain wasn’t really about the numbers—a signal, more than a surge. Stocks rallied earlier when U.S. President Donald Trump pushed back new attacks on Iranian infrastructure. But momentum faded fast: Tehran shot down talk of negotiations with Washington, oil prices didn’t budge.
Mining stocks climbed 2.8%, as Genesis Minerals, PLS Group, and Liontown all notched gains over 6%. That rebound propped up the benchmark index, which had dropped 0.7% the previous session after miners and banks weighed it down.
The rebound failed to lift all boats. Shares of Santos, Australia’s No. 2 oil and gas player, dropped 2.6% to A$7.84, trailing a 0.4% fall in the broader energy sub-index. The company temporarily closed its Darwin LNG plant—just as it had restarted its supply chain—halting exports, according to a statement.
Santos pointed to equipment replacement work on the BW Opal offshore vessel, which supplies Darwin LNG, as the reason for the stoppage. The company kept its 2026 production guidance steady at 101 million to 111 million barrels of oil equivalent.
This isn’t just about a single company. Australia ranks among the top LNG exporters globally, serving major Asian markets. As of about 4:30 p.m. AEDT, Brent crude traded near $103.7 a barrel, while the Australian dollar slipped to 69.61 U.S. cents, according to ABC market data.
Fuel costs have become a key factor for miners. Fortescue’s metals and operations chief executive, Dino Otranto, told Reuters a 10-cent swing in diesel prices translates to a $70 million difference for the company. For “the top four” miners, every 10-cent shift means roughly half a billion U.S. dollars, Otranto said. No mystery, then, why BHP, Rio Tinto and Fortescue shares tend to move whenever oil prices lurch. Reuters
Yet that bounce isn’t locked in. Investors have their eye on oil, but “the bigger risk is commodity-related inflation,” said Oliver Pursche, senior vice president and adviser at Wealthspire Advisors. He pointed to the threat of prolonged conflict stoking trade and food price pressures. Reuters
No surprise investors are wary. Reuters noted earlier this month that roughly A$130 billion vanished from the Australian market in just a week as the Middle East unrest escalated. Tuesday delivered a modest rebound, recouping just a fraction of those losses.
