Full Breakdown
Australian Shares Tumble as Oil Prices Hit Four-Month Highs
By Drooid · · How we work
Market Slide and Immediate Drivers
On September 11, 2026 the benchmark S&P/ASX200 fell 112.2 points, or 1.27 %, to 8,707.2, while the broader All Ordinaries slipped 120 points, or 1.33 %, to 8,888.3. The decline came as Brent crude rose to just under US$110 a barrel, its highest level since March, after Iran-aligned Houthis seized the Yemeni port of Mocha and unconfirmed reports emerged of multiple tankers being attacked near the Strait of Hormuz. IG market analyst Tony Sycamore noted that the Houthis may have scored a direct hit on Saudi Arabia’s East-West pipeline, a key conduit for up to seven million barrels a day.
Sectoral Impact
Mining stocks led the sell-off, with basic-materials shares down 4.3 %. BHP shares dropped 4.8 % to a five-week low of A$60.41, and Rio Tinto fell almost 4 %. Copper prices dived more than 5 % from recent record highs, while iron-ore futures fell on weaker Chinese demand. Precious-metal stocks also turned red: gold stocks slipped 1 % and silver prices crashed over 5 %. The financial sector provided limited support, edging up 0.5 % as banks and insurers attracted dip-buyers.
Key Data Points
- S&P/ASX200: 8,707.2 (-1.27 %)
- All Ordinaries: 8,888.3 (-1.33 %)
- Brent crude: ? US$110 bbl (four-month high)
- BHP: A$60.41 (-4.8 %)
- GQG Partners: -7 % after funds under management fell US$4.3 bn to US$149.2 bn in August
- Australian dollar: 71.56 US cents (down from 72.16 cents)
Analyst and Official Commentary
Tony Sycamore warned that the combination of rising oil prices, potential pipeline damage, and tightening US producer-price data was pushing bond yields to multi-year highs, narrowing expectations that the Federal Reserve would delay its next rate hike. The market’s reaction reflects heightened sensitivity to energy-supply shocks and inflation pressures.
Outlook
Investors will watch the Federal Reserve’s upcoming policy decision for clues on the trajectory of US borrowing costs. Continued volatility in Red Sea shipping lanes and any further escalation of Houthi attacks could sustain pressure on commodity-heavy Australian equities.
