Australia's share market is off to a shaky start to the week, after the US Federal Reserve flagged higher borrowing costs and renewed conflict in Iran sent oil prices higher.
The benchmark S&P/ASX200 index inched 0.7 points higher, or 0.01 per cent, to 9,093, as the broader All Ordinaries lost 5.1 points, or 0.09 per cent, to 9,286 by noon on Monday.
The move followed a weak finish for US equities on Friday, after hawkish comments from Federal Reserve chair Kevin Warsh prompted markets to brace for a US interest rate hike as soon as September.
Brent crude has jumped at the open to above $US90 a barrel, following reports that the US has targeted Iranian rocket launchers in the Strait of Hormuz, sparking retaliation strikes in the first such attacks in a month.
Local energy stocks gained 0.8 per cent, led by strong upticks in refinery operators Viva and Ampol, which each gained more than two per cent.
Rebounding banks helped keep the bourse out of the red, with financials up 1.6 per cent as Westpac led the big four higher.
It would mark a second straight positive session for the sector, which had fallen more than 10 per cent in roughly three weeks after housing sector concerns hammered earnings expectations.
Non-energy miners were a sea of red, the heavyweight segment down two per cent as precious metals retreated and copper eased from near all-time highs following the Federal Reserve's hawkish pivot.
Gold bullion is trading at $US4,443 ($A6,200) an ounce, falling for a third session from its recent rally.
Iron ore futures defied the trend, soaring to five-week highs of $US99.40 a tonne.
The traditionally defensive consumer staples sector gained 1.3 per cent as investors continued to pick up Woolworths and Coles stocks.
Buying in consumer cyclicals was more measured, with the segment improving by 0.6 per cent amid a strong performance from Domino's Pizza and some dip buying in Smiggle owner Premier Investments.
August earnings season has almost wound up, with a handful of names reporting on Monday.
Shares in Star Entertainment dipped almost four per cent after the casino giant narrowed its bottom-line annual loss to $307 million, from $480 million in 2024/25.
Liontown's share price swung in the other direction after the lithium miner handed down a maiden post-tax net profit of $93 million for the financial year.
Monash IVF also advanced despite softer revenue weighing on its profit result.
Looking ahead, the Australian Bureau of Statistics will deliver third-quarter economic growth figures on Wednesday.
The Australian dollar was buying 71.66 US cents, down from 71.99 US cents on Friday at 5pm, after the Federal Reserve's hawkish pivot narrowed the divergence in Australian and US interest rate expectations.
