ASX falls as Iran tensions escalate; Energy stocks rise, Southern Cross slumps

Updated June 11, 2026 — 5:49pm,first published June 11, 2026 — 5:22am

The Australian sharemarket declined on Thursday as escalating tensions in the Middle East cast doubt on when America and Iran can reach a deal to reopen the Strait of Hormuz, and as technology stocks came under more pressure on Wall Street.

The ASX/S&P 200 finished down 20.1 points, or 0.2 per cent, at 8633.20, with banks and tech stocks leading the losses after the US began a fresh round of strikes against targets in Iran. A flight to defensive sectors such as consumer stocks blunted the decline: seven of the ASX’s 11 industry sectors still finished in the green. The Australian dollar was trading at US70.03¢.

The latest strikes highlight Trump’s growing impatience with stalled peace efforts after months of failed negotiations. They also suggest the April ceasefire between the warring countries has effectively collapsed, despite the absence of a return to the large-scale bombing campaigns seen at the start of the conflict.

“We’re going to be attacking them, attacking them very hard,” Trump told reporters at the White House, before the latest strikes were announced. “We hit them hard yesterday, and we’re going to hit them hard again today.”

The escalation in the Persian Gulf sent oil prices higher, with Brent crude surging more than 2 per cent to trade above $US95 a barrel, while West Texas Intermediate advanced towards $US93, before paring gains after the US military announced an end to the brief campaign.

Energy stocks in turn advanced on the ASX, with Woodside Energy up 1.6 per cent and Santos 2 per cent higher. Coal producers also gained, with Yancoal climbing 4 per cent and Whitehaven Coal up 1.6 per cent as coal is emerging as an increasingly attractive alternative to oil for energy-starved countries across Asia.

“China has been restocking massive amounts of coal in recent months,” said Stamatis Tsantanis, chief executive officer of Seanergy Maritime Holdings. “Most importantly, coal is also becoming a strategic commodity for the United States.”

Meanwhile, technology stocks continued their rollercoaster ride. AI-related stocks again tumbled on Wall Street to continue a tumultuous month. Xero lost 3.6 per cent, WiseTech dropped 2.6 per cent, NextDC shed 4.2 per cent and Technology One dipped 1.6 per cent.

Financial stocks also declined across the board, heavily weighing on the market. Commonwealth Bank closed down 2.4 per cent, Westpac fell 2.6 per cent, National Australia Bank was down 1.8 per cent, and ANZ Bank fell 2.1 per cent.

However, mining turned higher in the aft