Australia\u2019s stock market faced a massive blow as $90 billion was wiped off its value in one day. The reason? A surge in oil prices and mounting concerns over the escalating US-Iran conflict. The ASX200 index plunged sharply, with fears that this could be just the beginning of a rough road ahead for the Australian economy. Experts are warning that this volatile situation could drag on, especially as global oil prices continue to climb.<\/p>\n\n\n\n
The steep drop in the Australian share market comes as oil prices soared by 30%, reaching $US110 per barrel. This marks the highest oil price since the aftermath of Russia’s invasion of Ukraine in 2022. The ongoing conflict between the US and Israel against Iran has caused disruptions in the Strait of Hormuz, one of the world\u2019s most crucial shipping routes for oil. This has created fears of a wider supply shortage, with oil prices continuing to climb, sparking deep concern among investors.<\/p>\n\n\n\n
At its worst, the market saw a 4.3% drop early in the trading session, though some losses were pared back later, with the final loss sitting at 2.85%. Experts were alarmed by the depth of the decline, marking it as the worst trading day since the early days of the COVID-19 pandemic in 2020. According to finance editor Chris Kohler, the volatility came as a result of stagflation concerns, where inflation rises while economic growth slows \u2014 often triggered by external shocks, like the one caused by the conflict, reports 9News.<\/a><\/p>\n\n\n\n